On the graph, show the consumer surplus that is redistributed from consumers to the Township Gazette and the deadweight loss that arises because the Township Gazette is a monopoly. Township is a small, isolated community served by one newspaper that can meet the market demand at a lower cost than two or more newspapers could.
The Township Gazette is the only source of news. Figure 1 shows the marginal cost of printing the Township Gazette and the market demand for it. The Township Gazette is a profit-maximizing, single-price monopoly.

Figure 1

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Price and cost (cents per newspaper) 100 80 60 40 25 0 MC D 100 200 300 400 500 Quantity (newspapers per day)