$1)$ United States Postal Service: $[$ Select $]["$Natural Monopoly $($Large Economies of Scale$)",$ "Resource Ownership", "Government Policy"$]$

$2)$ DeBeers Diamonds: $[$ Select $]["$Resource Ownership", "Natural Monopoly $($Large Economies of Scale$)",$ "Government Policy"$]$

$3)$ Prozac $($brand$-$name drug$)$: $[$ Select $]["$Government Policy", "Natural Monopoly $($Large Economies of Scale$)",$ "Resource Ownership"$]$

$4)$ Pacific Gas & Electric: $[$ Select $]["$Natural Monopoly $($Large Economies of Scale$)",$ "Resource Ownership", "Government Policy"$]$

$$

Price

Quantity Demanded

Total Revenue $($TR$)$

Marginal Revenue $($MR$)$

Total Cost $($TC$)$

Marginal Cost $($MC$)$

Average Total Cost $($ATC$)$

$$20$

$0$

$----$

$8$

$----$

$----$

$18$

$1$

$14$

$16$

$2$

$22$

$14$

$3$

$32$

$12$

$4$

$44$

$10$

$5$

$58$

$8$

$6$

$74$

$6$

$7$

$92$

$4$

$8$

$112$

$2$

$9$

$147$

$$

If the firm wishes to maximize profits, what level of output should it choose? Q $=$

$$ P $=$ $

$$ What are the values of MR and MC at this profit$-$maximizing level of output $($Q$)?$

$$ MR $=$ MC $=$

$$

What are the total profits earned at this profit$-$maximizing Q$?$

Profits $=$

If a perfectly competitive industry faced the same demand and costs, what level of ouput would it choose$$ to produce in the short run?

Q $=$ P $=$ $ $$ Hint: Where Demand and Supply $($MC$)$ meet.