SCENARIO: HOME MONOPOLIST A Monopolist Faces a Demand Curve Given by P =

SCENARIO: HOME MONOPOLIST
A monopolist faces a demand curve given by P = 60 -2Q and has total
Costs given by TC = Q2.Its marginal revenue is MR = 60 - 4Q and its
Marginal cost is MC = 2Q.
Reference: Ref 9­5
(Scenario: Home Monopolist) Compared with the no­trade equilibrium,
Producer surplus ___________ when the monopolist engages in free
Trade.

A) increases
B) decreases
C) remains the same
D) first increases, then decreases