Please answer all the questions with blanks, boxes, and graphs with coordinates please.

Please answer all questions according to the question number. Please don't summarize the answers in paragraphs. Please answer all the questionscorrectly.

1. Sources of monopoly power Monopolists, unlike competitive firms, have some market power. A monopolist can increase price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry. Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario.Barriers to Entry Government- Exclusive Created Economies Ownership of a Scenario Monopolies of Scale Key Resource During most of the 1900s, the De Beers Group of South Africa was viewed as a O O O monopoly because it controlled a large percentage of diamond production and sales. Patents are granted to inventors of a product or process for a certain number of years. The reason for this is to encourage innovation in the economy. Without the existence of patents, it is argued, research and development for improved electronics is unlikely O O O to take place, since there's nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the development costs. In the electricity industry, low average total costs are obtained only through large- scale production. In other words, the initial cost of setting up all the necessary wiring O O O makes it risky and, most likely, unprofitable for competitors to enter the market.2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.Graph Input Tool 150 Market for Goods 135 Quantity 25 Demanded 120 (Units) 105 Demand Price 75.00 (Dollars per unit) 90 75 PRICE (Dollars per unit) 60 45 Demand 30 15 0 6 10 15 20 25 30 35 40 45 50 QUANTITY (Units)On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results.1880 1692 Total Revenue 1504 1316 1128 940 TOTAL REVENUE (Dollars 752 564 376 188 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Number of units)Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produced. The marginal revenue of the 10th unit produced is $ Calculate the total revenue if the firm produces 20 versus 19 units. Then, calculate the marginal revenue of the 20th unit produced. The marginal revenue of the 20th unit produced is $ Based on your answers from the previous question, and assuming that the marginal revenue curve is a straight line, use the black line (plus symbol) to plot the firm's marginal revenue curve on the following graph.150 135 120 Marginal Revenue 105 90 75 MARGINAL REVENUE (Dollars) 60 45 30 15 0 -15 -30 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units)Comparing your total revenue graph to your marginal revenue graph, you can see that when total revenue is increasing, marginal revenue ispositive negative equal to zero3. The components of marginal revenue Jabari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Jabari initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Jabari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Jabari must lower the price from $160,000 to $120,000 per truck. Notice that Jabari gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000.220 200 180 Revenue Lost Demand 160 140 Revenue Gained 120 PRICE (Thousands of dollars per fire engine) 100 80 60 40 20 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Fire engines)Jabari increase production from 5 to 6 fire engines because the dominates in this scenario. True or False: If alternatively Jabari's HookNLadder were a competitive firm and $160,000 were the market price for an engine, decreasing its price from $160,000 to $120,000 would result in the same change in the production quantity and, thus, total revenue. O True O False4. Profit maximization and loss minimization Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss.4.00 3.50 Monopoly Outcome 3.00 2.50 Profit ATC 2.00 PRICE (Dollars per bottle) 1.50 Loss 1.00 MC 0.50 D MR 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of bottles of beer)Suppose Lagatt Green charges $2.00 per bottle. Your study partner Chris says that because Lagatt Green is a monopoly with market power, it should charge the higher price of $2.25 per bottle in order to increase its profit. Complete the following table to determine whether Chris is correct. Price Quantity Demanded Total Revenue Total Cost Profit (Dollars per bottle) (Cans) (Dollars) (Dollars) (Dollars) 2.00 2.25 Given the earlier information, Chris correct in his assertion that Lagatt Green should charge $2.25 per bottle.Suppose that a technological innovation decreases Lagatt Green's costs so that it now faces the marginal cost (MC) and average total cost (ATC) given on the following graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and moving the MC curve. Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing the loss.4.00 3.50 Monopoly Outcome 3.00 2.50 Profit PRICE (Dollars per unit) 2.00 1.50 Loss ATC 1.00 0.50 MC MR D 0 0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of bottles of beer)750 1,000 1,250 1,5001,000.00 2,625.00 2,750.00 4 125,00 6,000.005. Monopoly outcome versus competition outcome Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition.Competitive Market 5.0 4.5 PC Outcome 4.0 3.5 3.0 2.5 PRICE (Dollars per gyro) S=MC 2.0 1.5 1.0 0.5 D 0 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Gyros)Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change does not affect demand and that the marginal cost curve of the new monopoly corresponds exactly to the supply curve from the previous graph. The following graph reflects this new set of assumptions, and shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the monopoly vendor. Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity of a monopolist.Monopoly 5.0 4.5 Monopoly Outcome 4.0 3.5 3.0 Deadweight Loss PRICE (Dollars per gyro) 2.5 MC 2.0 1.5 1.0 0.5 D MR 0 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Gyros)Consider the welfare effects that result from the industry operating as a competitive market versus a monopoly. On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome. In the following table, enter the price and quantity that would arise in a competitive market; then enter the profit-maximizing price and quantity that would be chosen if a monopolist controlled this market. Price Quantity Market Structure (Dollars) (Gyros) Competitive Monopoly Given the summary table of the two different market structures, you can infer that, in general, the price is lower under a and the quantity is lower under a6. Examples of price discrimination Complete the following table by determining whether or not each scenario is an example of price discrimination. Hint: To determine whether a scenario is an example of price discrimination, think about whether the market can be segmented into two groups that pay different prices for the same good. Price Discrimination Scenario Yes No A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the O O outside. All sweaters are marked as 55% off. Every year, Lesspay ShoeSource promotes its giant BOGO sale-buy one pair of shoes and get one half off-through commercials and other means of advertising. Note that the price of one pair of shoes is the regular retail price, so a O O customer must buy two pairs of shoes to receive the discount.7. Price discrimination and welfare Suppose Clomper's is a monopolist that manufactures and sells Stompers, an extremely trendy shoe brand with no close substitutes. The following graph shows the market demand and marginal revenue (MR) curves Clomper's faces, as well as its marginal cost (MC), which is constant at $30 per pair of Stompers. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Clomper's marginal cost is constant, means that its marginal cost curve is also equal to the average total cost (ATC) curve. First, suppose that Clomper's cannot price discriminate. That is, it must charge each consumer the same price for Stompers regardless of the consumer's willingness and ability to pay. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the black points (plus symbol) to shade the deadweight loss in this market without price discrimination. (Note: If you decide that consumer surplus, profit, or deadweight loss equals zero, indicate this by leaving that element in its original position on the palette.)100 90 Monopoly Outcome 80 A 70 60 Consumer Surplus 50 PRICE (Dollars per pair of Stompers) 40 Profit MC = ATC 30 20 Deadweight Loss 10 MR Demand 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Pairs of Stompers)Suppose now that Clomper's is able to perfectly price discriminate-that is, it knows each consumer's willingness to pay for a pair of Stompers and is able to charge each consumer precisely that amount. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing quantity sold and the lowest price at which the firm sells its boots. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the black points (plus symbol) to shade the deadweight loss in this market with perfect price discrimination. (Note: If you decide that consumer surplus, profit, or deadweight loss equals zero, indicate this by leaving that element in its original position on the palette. )100 90 Monopoly Outcome 80 70 Profit 60 50 A PRICE (Dollars per pair of Stompers) 40 Consumer Surplus MC = ATC 30 20 Deadweight Loss 10 Demand 0 0 160 320 480 640 800 960 1120 1280 1440 1600 QUANTITY (Pairs of Stompers)Consider the welfare effects when the industry operates under a monopoly and cannot price discriminate versus when it can price discriminate. Complete the following table by indicating under which market conditions each of the statements is true. (Note: If the statement isn't true for either single-price monopolies or perfect price discrimination, leave the entire row unchecked. ) Check all that apply. Statement Single-price Monopoly Perfect Price Discrimination Clomper's produces a quantity more than the efficient quantity of Stompers. O 0 Total surplus is not maximized. O O There is no deadweight loss associated with the profit-maximizing output. O O8. Natural monopoly analysis The following graph gives the demand (D) curve for water services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.40 36 Monopoly Outcome 32 28 24 PRICE (Dollars per hundred cubic feet) 20 16 12 8 ATC 4 MC MR D 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Hundreds of cubic feet)Which of the following statements are true about this natural monopoly? Check all that apply. The water company is experiencing diseconomies of scale. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The water company must own a scarce resource. The water company is experiencing economies of scale. True or False: Without government regulation, natural monopolies can earn positive profit in the short run. O True O False9. Regulating a natural monopoly Consider the only electric company in a small town, which you can assume operates as a natural monopoly. The following graph shows the demand curve for electricity services per month, as well as the provider's marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve.100 90 80 70 60 50 PRICE (Dollars per subscription) 40 30 ATC 20 MC 10 MR D 0 2 4 6 8 10 12 14 16 18 20 QUANTITY (Thousands of subscriptions)Suppose the government has elected not to impose regulations on the industry, and so the firm faces no regulatory constraints in maximizing profits. Complete the first row of the following table. Short Run Quantity Price Pricing Mechanism (Subscriptions) (Dollars per subscription) Profit Long-Run Decision Profit Maximization Marginal-Cost Pricing Average-Cost Pricing Suppose now that the government decides to require the monopolist to set its price equal to marginal cost. Complete the second row of the previous table. Suppose now that the government decides to require the monopolist to set its price equal to average total cost.Complete the third row of the previous table. Under average-cost pricing, the government will raise the price of output whenever a firm's costs increase, and lower the price whenever a firm's costs decrease. Over time, under the average-cost pricing policy, what will the local electric company most likely do? O Allow its costs to increase O Work to decrease its costs6,000 10,400 12,00020 34 50Negative Positive ZeroExit the industry Stay in business Stay or exit10. Public policy toward monopolies Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that a natural gas utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? O Turn the company into a public enterprise. O Enact antitrust laws to increase competition. O Take no action. O Regulate the pricing behavior of the firm