2. a. b. The calculation of the deadweight loss of monopoly we did in class, assumed that both the monopoly and the competitive firm had the same marginal cost function. Explain what would happen to the deadweight loss to society if the monopolist's marginal cost was lower than that of a competitive industry. This question requires a graph. Andrea owns the only parking garage in town (i.e., she's a monopolist). Suppose that the marginal cost of letting an additional car in the garage is zero, and that the demand for parking in the garage is known. Show how Andrea determines the profit maximizing quantity of cars to allow in, and the price to charge. Is it always profitable for Andrea to fill the garage to capacity? Why or why not? Assume that Andrea does not practice price discrimination. This question requires a graph. Limit is one page total for a and b. Price Supply curve Market price at equilibrium Consumer surplus Producer surplus Deadweight loss Free market equilibrium Price ceiling Demand curve Equilibrium quantity Market quantity with price ceiling Quantity