For Questions 1 through 5, please consider a market served by a monopolist. The monopolist has a linear marginal cost (shown here as Marginal Private Cost, MPC_M) and a downward-sloping demand curve D₀. Here is a graphical representation of that market.

Question 1:

Assume that this monopolist is making a positive economic profit.

Add any necessary curve(s) to the graph shown below and graphically indicate:

• The original monopoly price P₀ and monopoly quantity Q₀.
• The "socially optimal" output (the output the Benevolent Dictator would choose) Q_SO.
• The resulting Consumer Surplus CS₀, the resulting Producer Surplus PS₀, and the size of Dead-Weight Loss DWL₀ if there is such a loss.
• Positive economic profits ?₀.