In comparing a perfectly competitive market and a monopoly, please answer each of the following problems thoroughly, based on your readings, for full credit. Quality outside research can only help your grade; please do not create your responses from the information in the text only. The use of outside references, as well as the textbook, must be cited and referenced.

a) Compare the competitive price charged and quantity produced under perfect competition and monopoly. Other than identifying the presence of only one producer under monopoly, why do we tend to see this differential?

b) Does a monopolist achieve efficiency in its production (that is, does it produce where MR = MC)? Will society face a welfare loss in a monopolistic market?

c) Applying Saint Leo's Core Value of responsible stewardship to this problem, would you consider that there is never good cause to allow monopolies to operate? Please take into consideration your answer to part b).