Question

28. Here you see the demand curve and marginal revenue curve faced by a monopolist. The monopolist has recently experienced an increase in its marginal costs, from MC1 ($20) to MC2 ($40). Part 1: Using the double drop line tool, select the price-quantity combination that the monopolist would choose when facing Marginal Cost 1 and label it profit maximization 1. Part 2: Using the double drop line tool, select the price-quantity combination that the monopolist would choose when facing Marginal Cost 2 and label it profit maximization 2. Part 3: Using the quadrilateral tool, shade in the area that represents the lost revenue for the monopolist due to the increase in marginal costs. Label this as Lost Revenue. Part 4: Using the quadrilateral tool, shade in the area that represents the gained revenue for the monopolist due to the increase in marginal costs. Label this as Gained Revenue. Coordinates: (36.00, 43.25) Demand Marg Revenue Marginal Cost 1 Marginal Cost 2 Prof Max 1 Prof Max 2 Gained Revenue Lost Revenue Unselected T Snapping 40 50 70 90 100

          28. Here you see the demand curve and marginal revenue curve faced by a monopolist. The monopolist has recently experienced an increase in its marginal costs, from MC1 ($20) to MC2 ($40). 

Part 1: Using the double drop line tool, select the price-quantity combination that the monopolist would choose when facing Marginal Cost 1 and label it profit maximization 1.

Part 2: Using the double drop line tool, select the price-quantity combination that the monopolist would choose when facing Marginal Cost 2 and label it profit maximization 2.

Part 3: Using the quadrilateral tool, shade in the area that represents the lost revenue for the monopolist due to the increase in marginal costs. Label this as Lost Revenue.

Part 4: Using the quadrilateral tool, shade in the area that represents the gained revenue for the monopolist due to the increase in marginal costs. Label this as Gained Revenue.

Coordinates: (36.00, 43.25)

Demand Marg Revenue Marginal Cost 1 Marginal Cost 2 Prof Max 1 Prof Max 2 Gained Revenue Lost Revenue Unselected

T Snapping

40 50

70

90 100

28 here you see the demand curve and marginal revenue curve faced by a monopolist the monopolist has recently experienced an increase in its marginal costsfrom mc120 to mc240 part 1 using th 24765

Added by Pamela G.

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