Determine the profit-maximizing output and price. What price and output would prevail if this firm's product were sold by price-taking firms in a perfectly competitive market? Calculate the deadweight loss of this monopoly. $120 110 MC 100 90- 80 70 60 50 40 30 20 10 MR 0 Quantity 0 2 6 7 8 9 10 11 12 13 14 15

Draw the demand curve, marginal revenue, and marginal cost curves from Figure 9.6, and identify the quantity of output the monopoly wishes to supply and the price it will charge. Suppose demand for the monopolys product increases dramatically. Draw the new demand me. What happens to the marginal revenue as a result of the increase in demand? What happens to the marginal cost curve? Identify the new profit-maximizing quantity and price. Does the answer make sense to you? Figure 9.6 Illustrating Profits at the HealthPill Monolpoly

What might some of the negatives of deregulation be?

ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened?