The concept of the student that have not grasped sufficiently.

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Chapter 11, Problem 4RQ

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The diagram above represents a monopolist firm. Answer the following questions: What price will this firm charge and what quantity produced in order to maximize profit? Explain your answer. If this firm becomes regulated and the regulatory agency want to achieve economic efficiency, what will be the price and quantity? Explain your answer. If the monopolist operates at the economic efficiency level, will he be making a profit or loss? Explain. Suppose the regulatory agency wants the monopolist to charge a price that matches what it costs to produce a unit of the good/service. What price will this be and what would be the quantity produced? Explain. At a price ceiling of $41 what would be the profit/loss of the monopolist?

pic 1 : Many schemes for price discriminating involve some cost. For example, discount coupons take up the time and resources of both the buyer and the seller. This question considers the implications of costly price discrimination. To keep things simple, suppose that our monopolist's production costs are simply proportional to output, so that average total cost and marginal cost are constant and equal to each other. On the following graph, use the grey point (star symbol) to indicate the price and quantity that would emerge under a monopoly without price discrimination. Then use the purple point (diamond symbol) to shade the area corresponding to the monopolist's profit, and use the green point (triangle symbol) to shade the area corresponding to consumer surplus. Finally, use the black point (plus symbol) to shade the area corresponding to deadweight loss. Let the region representing monopolist's profit be called XX, consumer surplus YY, and deadweight loss ZZ. Suppose the…

so if they acted like a monopolist and charged a single price to all consumers, what price would they charge to maximize profits? How do I figure this out looking at the graph?