show deadweight loss show economic profitlos price averagemarginal cost 225 200 175 mc 150 125 a

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So here we're talking monopoly, right? And we are given a picture of a monopolist, which is deci

Question

Show Deadweight Loss Show Economic Profit/Loss ($) Price, Average/Marginal Cost 225 200 175 MC 150 125 ATC 100 AVC 75 50 25 MR D 80 100 120 140 160 180 Quantity (units per month) 0 20 40 60 SETTINGS Reset PROFIT CALCULATIONS Market Price (Pmis) $125.00 Cost Structure Low Cost a b c High Cost ghij k1 m n o Marginal Revenue (MR) $50.00 Marginal Cost (MC) $55.00 Quantity Revenue $7,500.00 40 120 Costs $5,066.67 Quantity 60 Profit $2,433.33 Instructions: Make sure the interactive is set to "Natural Monopoly" on the upper right side of the Graph section. When "Natural Monopoly" is selected, it will have a dark blue background. With the Cost Structure (in the settings section) set to "a" a. What is the profit maximizing quantity? 60 units b. What is the maximum profit that can be earned? $2100 With the Cost Structure in the settings section) set to "e" c. What is the profit maximizing quantity? 60 units d. What is the maximum profit that can be earned? $2433.33 Let the Cost Structure remain at "e" e. If the firm decides to produce 80 units (where the average total cost equals demand -- P = ATC), the Revenue is $10000, the Costs are $10000, and profits are $0.

          Show Deadweight Loss
Show Economic Profit/Loss
($) Price, Average/Marginal Cost
225
200
175
MC
150
125
ATC
100
AVC
75
50
25
MR D 80 100 120 140 160 180 Quantity (units per month)
0
20
40 60
SETTINGS
Reset
PROFIT CALCULATIONS
Market Price (Pmis)
$125.00
Cost Structure Low Cost a b c
High Cost ghij k1 m n o
Marginal Revenue (MR)
$50.00
Marginal Cost (MC)
$55.00
Quantity
Revenue
$7,500.00
40
120
Costs
$5,066.67
Quantity
60
Profit
$2,433.33
Instructions: Make sure the interactive is set to "Natural Monopoly" on the upper right side of the Graph section. When "Natural Monopoly" is selected, it will have a dark blue background.
With the Cost Structure (in the settings section) set to "a"
a. What is the profit maximizing quantity? 60 units
b. What is the maximum profit that can be earned? $2100
With the Cost Structure in the settings section) set to "e"
c. What is the profit maximizing quantity? 60 units
d. What is the maximum profit that can be earned? $2433.33
Let the Cost Structure remain at "e"
e. If the firm decides to produce 80 units (where the average total cost equals demand -- P = ATC), the Revenue is $10000, the Costs are $10000, and profits are $0.

show deadweight loss show economic profitlos price averagemarginal cost 225 200 175 mc 150 125 atc 100 avc 75 50 25 mr d 80 100 120 140160180 quantity units per month 0 20 40 60 settings res 66821

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