Plz answer the following 2 frqs in detail

5, Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your nal answer. LI] P Power is a natural monopoly supplying electricity for a city. The rm produces the profit- maximizing quantity of electricity and earns a positive economic prot. (a) Describe a condition that distinguishes a natural monopoly from a typical monopoly. (1:) Draw a correctly labeled graph for the natural monopoly market in which LEI P Power operates and show each of the following. (i) The prot-maximizing quantity, labeled QM (ii) The prot-maximizing price, labeled PH (iii) The area representing economic prot, shaded completely Suppose the government wants to regulate LE P to produce the maximum quantity that would allow it to earn zero economic prot. On your graph in part (b), show the maximum quantity it will produce to earn zero economic prot, labeled Q3, and price, labeled Pn. (d) Suppose instead the government wants to regulate LEI P to produce the allocatively efcient quantity. (i) Does LEI P earn positive economic prot if it produces the allocatively efficient quantity? Explain. (ii) Under what condition will LEI P agree to produce the allocatively efficient quantity? Kohelis Mining is a monopoly and is currently operating at a loss. a. Draw a correctly labeled graph and show each of the following. i. The prot-maximizing quantity, labeled QM ii. The prot-maximizing price, labeled PM iii. The average total cost curve, labeled ATC iv. The allocatively efcient quantity, labeled QA b. Suppose the government grants Kohelis Mining a lump-sum subsidy such that the rm earls zero economic prot. i. On your graph from part (a), shade the area of the subsidy. ii. Will the prot-maximizing quantity increase, decrease, or remain the same? Explain. 0. Suppose instead the government provides Kohelis Mining a per-unit subsidy such that the rm earns zero economic prot. i. Will the prot-maximizing quantity increase, decrease, or remain the same? Explain. ii. Will the price paid by consumers increase, decrease, or remain the same? d. In this market, will the lump-sum or the per-unit subsidy lead to an increase in the total consumer surplus, or is the change indeterminate? Explain