Section B (60 marks) 1. The diagram below represents a Monopoly firm in equilibrium. Monopoly Price AR Quantity (a) Copy the above diagram into your answer book. (0) Clearly label cach of the lines numbered 1 to 3. (ii) The above firm produces Qu. Show on your diagram: the price the firm will charge for Qi. (use label P.) the average cost of producing this output. (use label C;) (15 marks) b) Explain each of the following barriers to entry and illustrate your answer with an example in each case: Patents and Copyrights Legal Monopolies Economies of Scale (45 marks) (Total: 60 marks) ********* END OF TEST 3 *******