Show all your work for the problems requiring calculations.

1.List the characteristics of a monopoly.Give an example of a firm that would likely be a monopoly.

2.Explain the three types of barriers to entry.Give examples of each.

3.Why is a monopoly able to earn an economic profit in the long run?

Price Quantity Total Total Revenue Marginal Revenue Marginal Cost (P) demanded Cost (Q) (TC) 18 0 200 15 100 700 12 200 1500 9 300 2600 6 400 4000 3 500 5700Price ( cents per kwh] b IRAC MC 9 D 0 100 200 1300 400 500 MR Quantity (kilo watt hours)