1.Explain, using the concept of economies of scale, why it makes sense to allow natural monopolies to operate in certain areas without competition? 2. Draw a complete and clearly labeled Lorenz Curve using the information below. Lowest 2nd 3 rd 4th 5th Quantile Quantile Quantile Quantile Quantile 3.6% 8.9% 14.8% 23% 49.8% 3. Use the monopoly diagram below to calculate total revenue, total cost and total profit. P $ 10 Miz 100 4. What is the distinguishing characteristic of monopolistic competition? Why are firms likely to advertise heavily in monopolistic competition? 5. TC TR MR O O 1 00 N 10 16 W 11 24 13 32 19 40 27 48 37 56 a) Use MR and MC to determine profit maximization for this firm. b) Represent MR and MC in a graph