2.1 Asanda is a producer in a monopoly industry. Her demand curve, marginal revenue curve and total cost curve are given as follows: Q=2002PMR=100QTC=5Q a) What is the profit maximizing level of output? [1.5] b) What is the profit maximizing price? [1] c) How much profit does the monopolist earn? [1.5] 2.2 Graphically illustrate and explain the monopolist's output decision. [5] 2.3 The ultimate determinant of monopoly power is the firm's elasticity of demand. What three factors determine a firm's elasticity of demand? Explain this in the context of a South African example of a monopoly. [4] 2.4 What is meant by the term "monopsony power"? What are some sources of monopsony power? What determines the amount of monopsony power an individual firm is likely to have? [3] 2.5 Distinguish the difference between monopsony and monopoly. Provide two graphical illustrations to aid your discussion when comparing monopsony and monopoly. [6] 2.1 Asanda is a producer in a monopoly industry. Her demand curve, marginal revenue curve and total cost curve are given as follows: Q=2002PMR=100QTC=5Q a) What is the profit maximizing level of output? [1.5] b) What is the profit maximizing price? [1] c) How much profit does the monopolist earn? [1.5] 2.2 Graphically illustrate and explain the monopolist's output decision. [5] 2.3 The ultimate determinant of monopoly power is the firm's elasticity of demand. What three factors determine a firm's elasticity of demand? Explain this in the context of a South African example of a monopoly. [4] 2.4 What is meant by the term "monopsony power"? What are some sources of monopsony power? What determines the amount of monopsony power an individual firm is likely to have? [3] 2.5 Distinguish the difference between monopsony and monopoly. Provide two graphical illustrations to aid your discussion when comparing monopsony and monopoly. [6]