Chapter 12 or 26. Government & Product Markets: Pre-Class & In-Class Activities Packet Name/I.D. Number: Section: Date: Part 4. Economic Equations and Graphs 1. Calculate the Herfindahl index and the four-firm concentration Use the following figure to answer questions 2-4. ratio for the following industry; Firms Market Share (3) Price 17 P. MC C P 2 ATC 14 P3 Q Q3 Quantity LO 2. Is the firm in the figure a natural monopoly? Explain your answer. 3. Will the firm in the figure earn profits if it produces Q; and charges P.? Explain your answer. 4. Which quantity in the figure is consistent with profit regulation? With price regulation? Explain your answers