Question: I just need help on C and D but here is the whole word problem 100% - Normal text Comic San_. 12 L and P

I just need help on C and D but here is the whole word problem

I just need help on C and D but here is the

100% - Normal text Comic San_. 12 L and P Power is a natural monopoly supplying electricity for a city. The firm produces the profit maximizing quantity of electricity and earns a positive economic profit. A. Describe a condition that distinguishes a natural monopoly from a typical monopoly B. Draw a correctly labeled graph for the natural monopoly market in which L and P Power operates and show each of the following: a. The profit maximizing quantity, labeled Q b. The profit maximizing price, labeled P. a. The area representing economic profit. shaded completely C. Suppose the government wants to regulate L and P to produce the maximum quantity that would allow it to earn zero economic profit. On you graph from part (B). show the maximum quantity it will produce to earn zero economic profit, labeled Qr and price, labeled R. D. Suppose instead the government wants to regulate L and P to produce the 5 of allocatingly efficient quantity. a. Does L and P earn positive economic profit if it produces the allocatingly efficient quantity? Explain. b. Under what condition will L and P agree to produce the allocatingly efficient quantity

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