CHAPTER 15MONOPOLY345e.If the author were paid $3 million instead of $2million to write the book, how would this affect thepublisher’s decision regarding the price to charge?Explain.f.Suppose the publisher were not profit-maximizingbut were concerned with maximizing economicefficiency. What price would it charge for the book?How much profit would it make at this price?2. Suppose that a natural monopolist were required by lawto charge average total cost. On a diagram, label theprice charged and the deadweight loss to societyrelative to marginal-cost pricing.3. Consider the delivery of mail. In general, what is theshape of the average-total-cost curve? How might theshape differ between isolated rural areas and denselypopulated urban areas? How might the shape havechanged over time? Explain.4. Suppose the Clean Springs Water Company has amonopoly on bottled water sales in California. If theprice of tap water increases, what is the change in Clean
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