Price 26 24 MC 22 20 18 16 14 12 Regulated price D MR Quantity 8 9 10 11 12 13 14 15 1. (5 points) (a) What price will an unregulated monopoly charge? (b) What quantity will an unregulated monopoly produce? (c) If the regulated price is $10 per unit, how many units will the regulated monopoly produce? (d) What is the quantity demanded at the regulated price of $10? Is there a surplus or a shortage or neither at the regulated price? (e) What is the deadweight loss to society when the regulated price is $10? 2. (5 points) Assume that the city government announces that public parks in the city belong to the public and from now on the public will be responsible for keeping the parks clean and the government will no longer perform that function. Will the city parks be clean after this change in government policy? Please give an explanation which includes the concept of the free-rider problem. 3. (5 points) (a) Is electricity for home consumption a public good? Please give an explanation. (b) Is a traffic light a public good? Please explain. 4. (5 points) In what way are vaccinations (not just for Covid19 but vaccinations in general) a positive or negative externality? Please give an explanation