Due to a patent, a firework company Ziz has a monopoly on a new product, branded like "Green". The company, also known as company Double Z [Ziz] is a profit-maximizing firm and is incurring economic losses in the short run. Based on this information answer the following questions :

1.Draw a graph of Ziz market for Green.

Make sure to:

1i. Label the profit-maximizing price (Pm).

1ii. Label the profit-maximizing quantity (Qm).

2. Upon the graph, shade the area of consumer surplus.

3. If Ziz is earning negative economic profit, why would they continue to operate in the short run ? Explain completely.

4. Essentially, assume that Pm equals to $8 and the ATC at the profit-maximizing quantity is $10. Under this means, if the firm is incurring $400 in economic losses, how many units of Green would it be making / producing? Show your work.

5. Upon your graph from part (1), label the allocatively efficient price (Pe) and quantity (Qe).

6. Moreover, would Ziz be producing in the inelastic or elastic range of its product's demand? Explain fully.

7. What would be the total revenue of Ziz based on the information from part 4?

8. Let's say you assume that Ziz becomes able to perfectly price discriminate....

8i. What would happen to Ziz consumer surplus?

8ii. What would happen to Ziz output?

9. Make sure to answer everything thoroughly.