Suppose a new product is developed and is supplied by a monopolist with a patent. Compared with the monopoly outcome, indicate whether consumer surplus, producer surplus, and total surplus increase, decrease, or remain the same under the following scenarios.
a. Consumer surplus, producer surplus, and total surplus all stay the same. A colluding duopoly has the same outcomes as a monopoly.b. Consumer surplus increases; producer surplus decreases; total surplus increases.c. Consumer surplus increases; producer surplus decreases; total surplus increases.