1 The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. 10 CD points D 44 E Tools 40 Pnt // References 36 marginal revel 32 28 24 20 1 6 12 eBook Costs and revenues C 816 24 32 4o 48 56 64 72 80 Quantity per period 10 points eBook Print References O 816 24 32 4o 48 56 64 72 80 Quantity per period b. What are the values of the prot-maximizing output and price? Output: Price: $ I: c. What are the values of output, price and total revenue when the rm's total revenue is maximized? Output: Price: $ Total revenue: $ The monopolist Mr. Pop It Right is considering whether it is worthwhile producing an additional 35 units per day of his large bags of popcorn. Doing so would cost him an additional $52 in total. He is currently selling 56 bags per day at $4.10 each. In order to sell the additional 35 bags every day, however, he would have to lower his price to $3.30. What do you recommend? Round your answers to one decimal place. Previous total revenue: 10 points New total revenue: eBook His additional revenue, therefore is ,which is the additional cost of $52, so he the additional bags. Print References The table below shows the costs and demand for the clove oil industry. 3 Total Ha rginal Ha rginal Total Total Quantity Price Revenue Revenue Cost Cost Profit/Loss a $27 / / $4 :| 1 26 | 27 :| 2 25 49 20 3 24 | 70 points 4 23 I 90 5 22 | 112 :| 6 21 | 136 53\"\" 7 20 | 162 Print 3 19 I 190 :I Raferences a. Complete the table above. b. If this industry was perfectly competitive, what would be the output, price, and total industry prot/loss? Output: Price: $ Prot/loss: $ c. If this industry was a monopoly industry, what would be the output, price, and total industry profit/loss? Output: Price: $ Prot/loss: $ a. Complete the table below, which shows the costs and revenues of Solo the monopolist. (You may assume that the demand curve is l I a straight line.) Leave no cells blank - be certain to enter "0" wherever required. Quantity 20 per Period Price TR MR MC TC points 0 / / / / $55 1 $24 $ $ $12 77 eBook 2 11 88 3 20 10 98 Print 4 9 107 5 80 8 115 References 6 9 124 7 12 10 134 8 11 145 9 12 157 10 13 170 b. What are the values of the prot-maximizing output, price, and total prot or loss? Output: Price: $ Total (Clickto select) c :3; c. At what output will total revenue be maximized, and what will be the value oftotal revenue? Output (units): 1 $24 $ $ $12 77 2 11 88 3 20 10 98 4 9 107 5 80 8 115 6 9 124 7 12 10 134 2, 8 11 145 pmms 9 12 157 10 13 170 EBOOk b. What are the values of the prot-maximizing output, price, and total profit or loss? Print Output: References Price: $ Total (Clicktoselect) 9 :$ c. At what output will total revenue be maximized, and what will be the value of total revenue? Output (units): Total revenue: $ d. What is the value of MR when profits are maximized and when total revenue is maximized? MR is $ when prots are maximized. MR is when total revenue is maximized. 5 Suppose that the graph below depicts a perfectly competitive market. points 900 eBook 750 Print 600 References Price 450 300 150 O 0 2 4 6 81012141618202224 Quantity per period 5 a. What are the equilibrium price and quantity and at equilibrium what is the value of the producer surplus, the consumer surplus and the economic surplus? Price: $ 10 quantity: points producer surplus: $ eBook consumer surplus:$ Print economic surplus: $ References b. What would be the monopolist's price, quantity, producer surplus, consumer surplus, economic surplus and deadweight loss? Price: $ Quantity: Producer surplus: $ Consumer surplus: $ Economic surplus: $ [ Deadweight loss: $