If you build a hyro-powered electricity system for the municipality of Vancouver. You are the only firm providing this service. You need a river and lots of land for your system, so you also have high fixed costs. You have to provide a large quantity of power to the entire surrounding population, enabling you to decreasing average cost as you produce more. Your monopoly is the result of your: O a. control of a scarce resource or input. O b. economies of scale O c. technological superiority. O d. use of government-set barriers.When Luda changed her single priced monopolist into a price discriminating monopolist, something that she had to do was: O a. avoid charging too low a price. O b. calculate the income level of each buyer in the market. O c. estimate her production and cost functions. O d. prevent the resale of goods among groups of buyers.Deadweight loss due to monopoly power is: Select one: O a. equal to the transfer of surplus from consumers to the monopolist when the monopolist raises price above marginal cost O b. created by the monopolist's restriction of output below the perfectly competitive level O c. equal to the value of monopoly profitsIf the BC Hydro, a monopolist, were to perfectly price discriminate, it would reduce total surplus. Select one: O a. True O b. FalseThe diagram shows the curves for a single price monopoly. The area shaded in red shows the total revenue if the monopolist chooses their profit maximizing price and quantity. $ MC ATC MR Q ***Correct answers will receive 1 mark. Incorrect answers will receive -0.5 mark. An answer left blank will receive 0 marks.***This means I will subtract 0.5 mark if you answer incorrectly.***So decide carefully before you answer. This is to discourage you from guessing:) *** Select one: O a. True O b. FalseThe following table shows the demand and cost information for a natural monopoly. If this firm is price regulated by the government, what quantity will they produce? P TR MIR TC MC ATC 120 0 132 114 WN - OD 114 114 174 42 174.0 108 216 102 216 42 108.0 102 306 90 258 42 86.0 96 384 78 300 42 75.0 90 450 66 342 42 68.4 84 504 54 384 42 64.0 78 546 42 426 42 60.9 8 72 576 30 468 42 58.5 9 66 594 18 510 42 56.7 10 60 600 6 552 42 55.2 11 54 594 -6 594 42 54.0 12 48 576 -18 636 42 53.0 13 42 546 -30 678 42 52.2 14 36 504 -42 720 42 51.4 15 30 450 -54 762 42 50.8 16 24 384 -66 804 42 50.3 17 18 306 -78 846 42 49.8 18 12 216 -90 888 42 49.3 19 6 114 -102 930 42 48.9 20 0 0 -114 972 42 48.6 Answer:B C S G MC ATC ATC MC=ATC MC MR D E G IMC MC AC Pmin ATC = P AC ATC- - -- -ATC ATC MR : Dq q Use the above diagrams to determine what area (A, B, C, D, E, F, G, H, I, J, K, L, M, N, or O) and the graph that will need to be calculated in the following scenarios. Put the letter of the area in the space for your answer. In your answer please put the diagram or graph first, then the area. For example, if you think it is just graph F, put F. If you think it is graph F area M put FM. Make sure that your letters are capital letters. Scenario: There is a monopoly with economies of scale as their barrier to entry. Currently they are allowed to choose whichever price they like. Their area of deadweight loss is represented by the letterThe following is information for a perfectly price discriminating monopolist. Demand: P = 5600 - 4Q Marginal revenue = P = 5600 - 8Q Marginal cost = ATC = 200 Calculate the producer surplus for the monopolist. You do not need to enter the $ sign or commas for large numbers. E.g. $50,000 can be entered as 50000 When answers are not whole numbers you can leave one number after the decimal. E.g. 10.2874 can be entered as 10.3