(solution) Township is a small isolated community served by one newspaper that can meet the market demand at…

(solution) Township is a small isolated community served by one newspaper that can meet the market demand at…

Township is a small isolated community served by one newspaper that can meet the market demand at a lower cost than two or more newspapers could. The Township Gazette is the only source of news. Figure 1 shows the marginal cost of printing the Township Gazette and the market demand for it. The Township Gazette is a profit-maximizing, single-price monopoly.  1. How many copies of the Township Gazette are printed each day and what is the price of the Township Gazette? 2. What is the efficient number of copies of the Township Gazette and what is the price at which the efficient number of copies could be sold?2  3. Is the number of copies printed the efficient quantity? Explain your answer 4. On the graph, show the consumer surplus that is redistributed from consumers to the Township Gazette and the deadweight loss that arises because the Township Gazette is a monopoly.