Assignment:
PRINCIPLES OF MICROECONOMICS
PROFILES IN MONOPOLY
In an essay of about 500 to 1,000 words, provide a profile of a business that operates as a monopoly.
In your essay, you should describe:
• What good and/or service does the company produce? How much does it produce?
• Why is the company a monopoly?
• How does the company determine the price and quantity of its outputs?
USE ILLUSTRATION (but only theoretical, not to scale)
• Illustrate and explain the monopoly's profits.
• What are the welfare implications (consumer surplus, deadweight loss) of this company's monopoly? USE ILLUSTRATION
• Is the monopoly regulated? If so, how? Explain the welfare implications (consumer surplus, deadweight loss, profits) of its regulations.
• If the company is not regulated, explain whether or not economic welfare could be improved through regulation. USE ILLUSTRATION
Your essay should contain an opening paragraph in which you summarize the body of your essay. All statements and ideas that come from other sources should be properly cited using the APA reference style (https://owl.english.purdue.edu/owl/resource/560/01/). Your essay should include a reference list, at lease have three references.
Evaluation based on: description of company, pricing and production decisions, reasons why it is a monopoly, illustrations of output, price, profits, welfare implications, description of regulation or need for regulation, clear writing and organization.