What is the difference between the price elasticity of demand for a monopolist and the price elasticity of demand for a monopolistic competitor? 4 Select the correct answer below: Monopolists face a higher elasticity of demand than monopolistic competitors. Monopolists face a lower elasticity of demand than monopolistic competitors. Both markets face perfectly elastic demand. The elasticity of demand for monopolists and monopolistic competitors depends on the industry not on the market type.

Question 13 Which of the following is true of a monopolist firm, but NOT of a monopolistically competitive firm? The firm can make strictly positive profits in the long run. The firm's marginal revenue curve is downward sloping and below the price. A profit-maximizing firm produces a quantity such that marginal revenue equals marginal cost. The firm has market power.

Please describe each step to solve the problem presented below:

3. Natural monopoly analysis The following graph gives the demand (D) curve for water services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. PRICE (Dals per hundred cubicfe RREZRE MR 4 7 OP . QUANTITY Oundreds of cubic feet Monopoly Outcome

6. The following graph shows the demand, marginal revenue, and marginal cost curves for a single-price monopolist that produces a drug that helps relieve arthritis pain.

Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist?

Refer to the accompanying table, which represents the costs and production for a monopolist. Price Quantity Fixed Cost Variable Cost $20 0 $10   $0 $18 1 $10   $5 $16 2 $10   $8  $14 3 $10 $18   $12 4 $10 $30   $10 5 $10 $44         1) At Q=2, the marginal cost of this firm is $ ____ 2)The profit made by this profit-maximizing firm is $ __

(a)    Does a monopolistically competitive firm have an incentive to produce at the level of output that minimizes the average total cost at the long run equilibrium? Explain with a diagram.                                                                                    (b)   Suppose CLP Holdings Limited is a natural monopolist with constant marginal cost.         Draw a diagram to indicate the profit-maximizing level of output, the profit-maximizing price, and the size of the profit.            If the government wants to increase the market efficiency through price regulation, would you suggest the government setting the price equal to the firm’s marginal cost or its average total cost? Explain in detail with the diagram in part (i).

Q20 With regard to price discrimination, we can generally say that a monopolist practicing perfect price discrimination _____ a single-price monopolist in the same market. a. Produces the same output level and charges the same price as. b. Produces a lower level of output compared to. c. Generates more consumer surplus than. d. Generates a more efficient outcome for society as a whole compared to. e. Has the same effects on consumer welfare as.

Suppose that Jana's Financial Consulting Company is a perfectly price discriminating monopolist with the following cost and revenue information: 0 1 2 Quantity Total Cost Marginal Cost Price Total Revenue Marginal Revenue $100 $170 $140 $160 $184 $150 $230 $140 $280 $130 $335 $120 $395 $110 $475 $100 $575 $95 min 00 6 7