In a town called Flicksville in a rural area, there is just one gas station called Flicks Gas. This gas station resembles a monopoly on the sale of gasoline. Flicks Gas is currently earning economic profit while operating as a monopoly.

Draw a correctly labeled graph for Flicks Gas and show each of the following in your graph

a. The profit-maximizing quantity denoted as QF

b. The profit-maximizing price denoted as PF.

c. The deadweight loss associated with the Flicks profit-maximizing quantity. Shade this area in your graph.

d. Assume that fixed costs for Flicks Gas has increased because the management at Flicks Gas negotiated a new contract. Will each increase, decrease, or remain unchanged at Flicks profit-maximizing quantity?