1. The problem asks to identify common examples and characteristics of monopoly markets. 2. A monopoly market is one where a single firm dominates the market with no close substitutes. 3. Common examples of monopoly markets include utilities like electricity because they have high barriers to entry and are often regulated. 4. Businesses with monopoly power due to government regulations include pharmaceutical companies with patents, which legally prevent competition. 5. In a monopoly, the monopolist sets the price, not consumers, competitors, or the government. 6. The profit-maximizing price for a monopolist is set where marginal revenue equals marginal cost, and the price is found on the demand curve at that quantity. 7. Given marginal revenue = 50, marginal cost = 50, average total cost = 80, average variable cost = 40, and price = 70: - Since price (70) > average variable cost (40), the firm should continue operating despite losses because it covers variable costs. 8. High fixed costs can lead to losses if revenue does not cover them, impacting the monopolist's decision to stay in the market. 9. A monopolist maximizes profit by choosing quantity where marginal revenue equals marginal cost and pricing according to the demand curve. 10. When barriers to entry exist, economic profits can be sustained without competition. 11. If price rises above average variable costs, the loss area decreases because the firm covers more of its costs. 12. A business should shut down when price is less than average variable costs because it cannot cover variable costs. Final answers: 1. Electricity utilities 2. Pharmaceutical company with patents 3. The monopolist 4. Set the price on the demand curve where marginal revenue equals marginal cost 5. Should continue to operate at a loss as the price exceeds the average variable cost 6. They can lead to losses if not covered by revenue 7. By choosing a quantity where marginal revenue equals marginal cost and pricing on the demand curve 8. Economic profits can be sustained without competition 9. The loss area decreases 10. When the price is less than average variable costs