this is from AP microeconomics unit 6, lesson 4

topic: MARKET FAILURE AND THE ROLE OF THE GOVERNMENT: _{THE EFFECTS OF GOVERNMENT INTERVENTION IN DIFFERENT MARKET STRUCTURES}

_{i attached the rubric for reference & the assignment below}

_{thank you! i really need help}

Aqueus is a classic monopolist earning positive economic profits. (a) Draw a graph of Aqueus, labeling the profit-maximizing price PM, the profit-maximizing quantity QM, and the allocatively efficient quantity 030' Shade the area of deadweight loss. (b) If Aqueus is earning economic profits, why would other firms not enter the market? Explain. (c) The government sets an effective price ceiling. On your graph from part (a), label this price PR and the new output quantity QR. (d) After the change in part (c), Aqueus's total revenue is $40 million. If the output quantity is now 5 million units, what must be the value of PR? (e) If ATC at QR is $5, what is the economic profit or loss with the government intervention? (1') How would the government action in part (c) affect the deadweight loss in Aqueus's market? (9) Why might the government prefer to use antitrust policy to regulate Aqueus in the long run? Explain. (h) Gaiana is a small firm that builds machines essential to the production of Aqueus's product in a perfectly competitive factor market. Assuming that Gaiana was in long-run equilibrium, illustrate the short-run effect of the government intervention from part (c) on Gaiana's supply and demand in a separate graph. If Gaiana earns any economic profit or loss, shade it. (i) Assume that Gaiana operates in a constant-cost industry. What would happen to Gaiana's firm supply and demand in the long run? Explain. Create accurately labeled graphs or visual 4Graphing and representations of an economic model, market, Visuals and/or situation. Perform numerical analysis. Make assertions about economic concepts, 1Principles and principles, models, outcomes, and/or effects. Models Explain economic concepts, principles, models, 2lnterpretation outcomes, and/or effects. Determine the end result of a specific economic 3Manipulation scenario. Perform numerical analysis