1.Due to a patent, a firework company Ziz has a monopoly on a new product branded under the name "Green". Ziz is a profit-maximizing firm and is incurring economic losses in the short run. Based on this information answer the following questions :

a. Draw a graph of Ziz market for product Green. Make sure to:

i. Label the profit-maximizing price (Pm).

ii. Label the profit-maximizing quantity (Qm).

b. Upon the graph of part a, shade the area of consumer surplus.

c. Upon your graph from part (a), label the allocatively efficient price (Pe) and quantity (Qe).

2 Sunny Double is a juice firm that is operating in a monopolistically competitive market. Under this means, it is currently earning positive economic profits. Based on this information answer the following questions completely:

a. Draw a completely labeled graph of Sunny Double. [Make sure to label the profit-maximizing quantity (Qm) and the profit-maximizing price (Pm)].

b. Then follow to shade the area of deadweight loss.