The firms that produce gas have considerable market power and hence are typically considered to be monopolies. Monopoly firms are unchecked by competition and, therefore, the outcome in a monopoly market is often not in the best interest of society. The following question requires you to consider the welfare implications of a monopoly. Draw a full-labelled diagram of a monopoly firm earning an economic profit. Show the firm's profit- maximising price and output, consumer surplus and producer surplus and deadweight loss.