Hello, need help with answering on this microeconomics questions. Thank you!!!

#1

A firm has a patent on new nanotechnology, making it the only producer of that device. The firm is currently earning a positive economic profit and is producing the profit-maximizing level of output.

1. Draw a correctly labeled graph for the firm and show each of the following.
   1. The quantity of nanotechnology devices produced by the firm, labeled as Qm.
   2. The price charged by the firm, labeled Pm.
   3. The area representing consumer surplus, shaded completely.
2. The government is considering different options to regulate the firm.
   1. Suppose the government is considering taxing the firm. Could using a per-unit tax change the firm's output to the socially optimal quantity? Explain.
   2. Instead, suppose the government imposes a price ceiling so that the firm produces the socially optimal output. On your graph in part (a), label the quantity and price after the price ceiling is imposed as Qc and Pc.
   3. At the price and quantity identified in part (b)(ii), is the firm earning positive economic profit? Explain.
3. Assume the government decides not to regulate the firm and instead the firm produces the quantity of output that maximizes total revenue.
   1. If the firm now increases its output by one unit, would marginal revenue be positive, negative or zero? Explain.
   2. Starting at the total-revenue-maximizing quantity, if the firm reduces the price by 10%, would the quantity demanded increase by less than 10%, by more than 10%, or by exactly 10%?

#2

As the only gas station in a small town, Sunshine Mart has a local monopoly on the sale of gasoline. Sunshine Mart is currently earning positive economic profits.

(a) Draw a correctly labeled graph for Sunshine Mart and show each of the following.

(i) Sunshine Mart's profit-maximizing quantity, labeled QF

(ii) Sunshine Mart's profit-maximizing price, labeled PF

(iii) The deadweight loss associated with Sunshine Mart's profit-maximizing quantity, shaded completely

(iv) The maximum quantity at which Sunshine Mart would earn zero economic profit, labeled QZ

(b) Assume that Sunshine Mart's fixed costs increase because of a new lease on its property and Sunshine Mart stays in business. Will each of the following increase, decrease, or remain unchanged at Sunshine Mart's profit-maximizing quantity?

(i) The deadweight loss. Explain.

(ii) Sunshine Mart's economic profit

(c) If Sunshine Mart were to price discriminate, what would happen to the following?

(i) Profits.

(ii) Consumer surplus. Explain.

(d) Assume now the government regulates the firm to produce at the socially optimal output level. Where would this occur on a graph?

(e) Assume the firm chooses to produce the quantity of output that maximizes total revenue. If the firm now increases its output by one unit, would marginal revenue be positive, negative, or zero? Explain.

#3

Average Total Cost Marginal Cost Demand Quantity Marginal Revenue The graph shows the cost and revenue curves for an unregulated, profit-maximizing monopoly. (a) Is the firm shown in this graph a natural monopoly? Explain. (b) Using the labeling from the graph, identify the area representing the deadweight loss for this profitmaximizing monopoly. (c) In order to improve resource allocation, the government sets a price that results in the firm earning zero economic profit. (i) Using the labeling from the graph, identify the price and resulting quantity the firm would produce. (ii) Will this government policy eliminate the deadweight loss? Explain using labeling from the graph. (d) Instead, the government decides to set a price that results in the socially optimal quantity of output. Will the firm earn positive, negative, or zero economic profit? Explain using labeling from the graph