Price 60 46 449 40 MC 30 ATC 24 20 08 18 0 9 12 15 MR D Quantity Refer to the graph. Suppose a Monopoly firm is the only seller in this market. What is the Market Quantity?

If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?

How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?

From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural monopoly? Justify. Use the following information to answer the next three questions. In the years before wireless phones, when telephone technology requited having a wile matting to every home, it seemed plausible that telephone service had diminishing average costs and might require regulation like a natural monopoly. For most of the twentieth century, the national U.S. phone company was AT&T, and the company functioned as a regulated monopoly. Think about the deregulation of the U.S. telecommunications industry that has occurred over the last few decades. (This is not a research assignment, but a thought assignment based on what you have learned in this chapter.)