Will the monopolist make profits or lose money?

a. In diagram 2. the government does not regulate this monopolist. Which price will it charge and Show more a. In diagram 2. the government does not regulate this monopolist. Which price will it charge and how much will it produce? What does the red triangle represent? Why? b. In diagram 3. the government imposes a price ceiling equal to the marginal cost $0.30. Will the monopolist make profits or lose money? Explain the shaded area of the diagram and what it means for the monopolist. If the government does impose this price ceiling do you think the firm will continue to produce in the long run? c. In diagram 4. the government imposes a price ceiling of $0.50 will the monopolist make a profit lose money or break even? Explain area of the diagram marked by the red dashed lines and what it means for the monopolist. Show less

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