Please help with this assignment

Question 07: Refer back to Question #1. The graph is a typical graph for the short run monopoly firm. Is the graph for the long run monopoly curve the same? [ yes OR no ]. That is, can a monopoly enjoy economic profits in the long run? Explain why or why not. Hint: refer to the characteristics of monopoly markets. Question 08: Suppose that a cookie cafe faces the Price situation depicted in the diagram to the right for each 1.00 of its customers. Notice that the marginal cost and average total cost curves are constant at 20 cents per 80 cookie. .60 (a) Without Price Discrimination: First let's see what the profit would be without price discrimination. .40 How many cookies should the cafe sell? .20 MC-ATC What price will maximize the firm's profits? MR D 2 8 10 Quantity Profit = Total Revenue - Total Cost, but we could also calculate profit by figuring out the profit per cookie and multiplying that by the number of cookies sold. Remember we can think of the Average Total Cost as the "per unit cost". Calculate the profit. Profit = (Price - Average Total Cost) x Quantity = (b) With Price Discrimination: If the cookie cafe uses price discrimination, based on age differences, how much will their profit be? Assume kids (under 10 years) pay only 40 cents per cookie, while adults pay 70 cents. Finish filling in the table and see... Price Quantity Per cookie profit is ... Profit = per cookie profit times quantity (price - $0.20) at this price. $0.70 3 $0.40 Profit = The demand curve suggests the quantity demanded would be 6 at a price of 40 cents, yet I only have a quantity of 3 above. I'll assume 3 of those 6 people were adults and already bought a cookie at 70 cents. If I did the math correctly, the cookie company should make an extra 50 cents profit if they price discriminate - see if