Graphically illustrate and discuss the social costs of a monopolist to society.

(c) Suppose you manage a rural electric (utility) firm in Georgia, USA, and your firm is the only supplier of

electricity in the county. Assume that the market demand function for electricity in your county is

Q = 675 - 500P and the costs of electricity produced by your electric firm is C(Q) = 120 + 0.13Q, where Q is output and P is unit price. Clearly show your steps and determine the short-run profit maximizing output and price of electricity by your electric firm.

(d)Clearly show your steps and determine the own-price elasticity of demand at the short-run profit maximizing levels of output and price in (c) above.

(e)Carefully explain why your estimated price elasticity of demand in (c) above is reasonable or not.