The above figure represents a perfectly competitive industry that is taken over by a single firm and operated as a monopoly

a) What was the competitive price and quantity?
b) What is the monopoly price and quantity?
c) What area represents consumer surplus under perfect competition?
d) What area represents consumer surplus under monopoly?
e) What area represents the deadweight loss of monopoly?

a) The competitive price was P2 and the competitive quantity was Q2.
b) The monopoly price is P3 and the monopoly quantity is Q1.
c) The consumer surplus with perfect competition is the area P4P2c.
d) The consumer surplus with monopoly is the area P4P3a.
e) The deadweight loss from the monopoly is the area abc.