the course code is ECO101/ ECO100

Suppose that a firm acts as a local monopolist that sells tobacco. The monopolist faces a local demand given by: QD = 100 - 4p This firm also has a cost structure given by: MC = The firm has zero fixed costs. 9. What is the profit-maximizing quantity for this monopolist to produce? Show your work. [2 points] Now suppose that the government steps in to regulate this monopolist, and imposes a price ceiling of $15 for this monopolist. 10. Draw a figure here that includes the demand curve, marginal cost (MC), marginal revenue (MR), and original choice of production (answer to part 1). As always, keep quantity on the x-axis and price on the y-axis. Label all intercepts. [2 points] 11. At what quantity will this new regulated monopolist choose to produce? Show your work. [2 point] 12. What happens to both profits and consumer surplus in this case? If they change, by how much? Show your work. [HINT: To do this, you will need to calculate the old CS & PS under the unregulated monopoly, and then the new CS & PS with the price ceiling. ] [6 points]Suppose that we are thinking about a monopolist that produces space shuttles. This market faces a demand given by the following equation, which can be seen in the following table: Qn=11P The Table: Quantity Dema nded P rice TC Prot ATE MC ______- ______- ______- ______- ______- ______- ______ ______- 5. Fill in the above table. including TR, prots, MR, ATE, and MC. [2 points] i". What is the prot-m asimizing quantity for the monopolist to produce? [1 point] Suppose instead that this firm remains a monopolist, but is now able to engage in First Degree Price Discrimination. 3. Draw a figure in this case which includes the demand, MR, and MC curves. Label where this first-degree price discriminating monopolist will choose to produce. Now also label the new consumer surplus, producer surplus, and deadweight loss on this figure as well. [3 points]