In the following graph, reproduced from the answer to Solved Problem 11.3, indicate the area representing the Red Robin restaurant’s profit when the demand curve is D1 and the area representing its loss when the demand curve is D2.

Transcribed Image Text:

Price (dollars per hamburger) P ATC2 ATC P2 MC ATC D D2 0 Q2 Q1 MR2 MR Quantity (hamburgers per week)