Question 3 3 pts Springfield Utility District (SUD) is a local electrical utility company and a natural monopoly. The marginal cost (MC), average total cost (ATC), demand (D) and marginal revenue (MR) curves for the company are shown below. PRICE AND COST ATC C MC MR D OUTPUT The point where this firm, SUD, is producing [ Choose ] at if it is unregulated. The point where this firm, SUD, is producing [ Choose ] if it is regulated using the Average Cost Pricing Rule. The point where a competitive firm would be [ Choose ] producing.Question 4 Explain the profit maximizing rule for monopolies? Is this the same as for competitive firms?Question 5 What is price discrimination and why do firms price discriminate?Question 7 2 pts In Industry 1, the four largest firms have market shares of 55%, 15%, 5%, and 5%. In Industry 2, the four largest firms have market shares of 30%, 25%, 15%, and 10%. What is the four-firm concentration ratios for each industry? Industry 1 = Industry 2 = Which industry is expected to be more competitive and thus more likely to be allowed to merge?Question 8 A ve-rm industry has market shares equal: 65, 15, 10, 5, and 5. The industry's HHI = This industry highly concentrated. (answer is or is not) A merger in this industry likely to be approved. (answer is or is not) Question 9 3 pts The graph below depicts an industry that has been monopolized. 120 110- 100 S 90 80 PRICE ($) 70 60 50 40 30 20 - D MR 20 30 40 50 60 70PU A 3 8 L\" 70 Q n: so 0. 50 40 30 20 D MR | | | l i | 20 30 40 50 60 70 OUTPUT If this market is in equilibrium, the price = and output = Is there any deadweight loss? [yes or no) If a monopoly raised the price to $30, the approximate output be .At this new price, would there be any deadweight loss? (yes or no) Question 10 3 pts Below is a graph of a monopoly rm. Estimate how much this monopoly earning in prots or losses. [Either draw the rectangle virtually and nd the area or use the Prot Equation from the lecture). *Use a negative sign in front of the number to indicate Losses. As long as you are in the ballpark, Canvas should mark it correct. COST Question 11 3 pts Below is a graph of a monopoly rm. Estimate how much this monopoly is earning in prots or losses. (Either draw the rectangles virtually and nd the area or use the Prot Equation from the lecture}. *Use a negative sign in front of the number to indicate Losses. As long as you are in the ballpark, Canvas should mark it correct. 120 11 INC 100 ATC 8 COST 2% 8 8 8 8 A\"? l | l | | | 20 so 40 50 so 70 OUTPUT