a. b. Write and graph an equation for d 15 MR= 10 C. d. B. Giganet is a single-price monopolist in Hell, MI. They own and operate the intemet facilities for all businesses and residents in Hell and the surrounding county. The inverse demand for internet subscriptions is P = 26-2Q, where P is the price of] subscription and Q is the quantity of subscription. Giganet faces the average total cost shown in the graph below [ATC = 2 + 24/0) and the marginal cost of production is constant at MC=$2 In words, what is the profit maximizing condition for Giganet'? 28 26 24 22 20 18 R 14 12 the marginal revenue of Giganet: 8 monopolist, graphically show the profit-maximizing level of output (Q): Prim? (P), 6 If this monopolist is a single price 4 2 0 profit (Fl), and inefficiency (dead weight loss). (Note: ATC = 2 + 24/62). Show yourwork. Q = P = 1'] = Inefficiency= In this case, what is the most likely reason this firm exists as a monopolist? Suppose that the town residents argue that the price is too high and the quantity ofinternet subscriptions is too low. If the mayor regulates Giganet so that P= MC. Recall that P comes from the demand curve, so you have an equation for both P and MC. Calculate short mn output, price, profit, and inefciency. Show your work. Q = P = Fl 2 Inefficiency= Is this H sustainable in the short run? Long run'? f. Giganet complains to the mayor that P=MC is too low. They say they will leave the market in the long run. The mayor decides to compromise and sets a new price, P=ATC. The precise #s for P and Q are messy, but what is Q (approximately) = P (approximately)= Fl (hint, no math needed!)= How does the deadweight loss compare to MC pricing? Is this H sustainable in the short run? Long run? 9'. Read or listen to Abeie's blockbuster drug Humira finally loses its 20-year $200 billion monopoly and Blockbuster drug Humira nally faces lower-cost rivals on NPR. a. What does Humira do? b. How did it maintain its monopoly? c. How did it lose its monopoly? d. What do you expect to happen to the price of the drug, the quantity ofthe drug available and the prots in the market? e. Do you expect the market for the drug to become perfectly competitive? Explain