Question: In the diagram illustrated below:
Q1. What does the area EBCD represent? Provide a full explanation of the concept that is shown in that area.
Q2. What does the point A, which occurs at the intersection of the green and blue lines, represent?
Q3. What does point E represent, and how is it determined?
Q4. Why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug?
Q5. Does the eventual ending of that monopoly cause the monopolist to lose all of its market power? Explain.