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I ONLY NEED HELP WITH QUESTION (H) ONLY QUESTION (H) PLEASE. It is in bold at the bottom I think you might need the other

I ONLY NEED HELP WITH QUESTION (H)

ONLY QUESTION (H) PLEASE.

It is in bold at the bottom

I think you might need the other information so complete it though.

(a) Draw a graph of Ampstand, labeling the profit-maximizing price Pm, the profit-maximizing quantity Qm, and the allocatively efficient quantity QSO. Shade the area of deadweight loss.

To graph the natural monopolist, Ampstand, I drew in the long run average total cost curve with a downward trend. The marginal cost curve is flat as the production costs are near a constant level and so it is not a swoosh shape. The marginal cost curve is below the long run average total cost curve along the whole graph. I made two marks on the x-axis. The marginal revenue curve should fall twice as fast as the demand curve. I drew these two lines in to reflect that relationship.

Without intervention, Ampstand will product like any other market structure even though it is a monopoly.This means that the profit maximizing quantity, Qm, will be where marginal revenue is equal to marginal cost. I have found the intersection of MR and MC and drew a dotted vertical line down to the x-axis so show this profit maximizing quantity, Qm. I extended this dotted line up vertically to show where it will intersect the demand curve. This is how the price will be determined. The price Ampstand will set is determined by the demand at the profit maximizing quantity. I connected the point where the vertical line the represents the profit maximizing quantity intersects the demand line using a horizontal line over to the y-axis to show the profit maximizing price, Pm. The socially optimal production level is where marginal cost intersects demand. I found on the graph where MC=D and drew a dotted line down to the x-axis to show this socially optimal quantity and labeled it Qso. The deadweight loss region is a triangle. The triangle is formed be the difference in price at the socially optimal quantity (we were not instructed to label this point on the y-axis, but it is already a horizontal line on the graph as the marginal cost curve) and the price that the unregulated Ampstand will charge, Pm.Another side of this triangle is the difference between the profit-maximizing quantity Qm, and the socially optimal quantity Qso. The third side of the triangle is the segment of the demand curve between the socially optimal quantity and the profit maximizing quantity.

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