Tutorial Week 11: Chapter 15 Problems and Applications 01. Suppose that a natural monopolist were required by law to charge average total cost. On a

The Best Computer Company just developed a new computer chip, on which it immediately acquires a patent.a. Draw a diagram that shows the consumer surplus, producer surplus and total surplus in the market for this new chip.b. What happens to the three measures of surplus if the firm can perfectly price discriminate?What is the change in dead weight loss? What transfers occur?