Using the same Market information from practice problems above assume there are 12 Buyers with the following WTP: 400, 500, 600, 700, 800, 900, 1000, 1100, 1200, 1300, 1400, 1500. However assume instead of 12 Sellers there is one seller (a monopolist) that can produce up to 12 units with the marginal costs of production for each unit (WTA): 600, 650, 700, 750, 800, 850, 900, 950, 1000, 1050, 1100, 1150. Assume the monopolist has no fixed costs.

1. For the Monopolist firm what is the equilibrium price and quantity in this market?
2. At the equilibrium price and quantity, calculate the total value created, total consumer surplus, and total producer surplus. (note there are only a discrete number of transactions, the demand curve is not continuous).
3. What profit would the Monopolist make if they charged a price of $1,100?
4. Explain the logic of why the monopoly firm should raise price if someone proposes that they set a price of $1000 because that person states you want to price a little above the competitive market price of $900.

please explain your answer. I am very confused as to why for the first question it is quantity 4 with P being 1200.

Demand & Supply from Market 1600 1500 1400 1300 1200 1100 1000 900 Price 800 700 600 500 400 300 200 100 0 0 N 4 6 8 10 12 14 Quantity -Demand -Supply 1 --Supply 2