3. Based on the following scenario, answer questions 3a, 3b, 3c, and 3d: The McDonald's table shows information you found out about McDonald's production capabilities and costs when operating as a monopoly. Question 8 3a. Download the McDonald's table mentioned on the left. ll it out. Upload yourcomplete table in the space below. (V. per entry) Edit View Insert Format Tools Table 14m:V ParagraphVI B I 9 AV iv T'VI D Question 10 2 pts 3c. What could Mcdonald's do to create barriers that would prevent others from entering the markets and would make it harder for remaining hamburger shops to remain in the market? Edit View Insert Format Tools Table 14pt ~ Paragraph ~ | B I U A v Q V T V | Q B BV D | $ | ESD BV VX QD Question 11 4 pts 3d. There are several hamburger shops around you. You are trying to find ways to make your hamburger shop the most successful hamburger shop in your area. What is at least one way you would differentiate your shop from others? (2 points). Explain how that action would decrease costs, increase production, or otherwise raise your profits. (2 points) Edit View Insert Format Tools Table 14 pt > Paragraph ~ | B J U A v Q V T V | Q V B BV D | $ | EV E S D BBV V Q p :23 1 0 words >Mcdonald's Quantity Variable Costs Fixed Costs Total Costs Price Total Revenue Profit Marginal Costs Marginal Revenue 1,000 500 5,000 5,500 4.00 2,500 1,000 5,000 6,000 3.50 4,000 1,400 5,000 6,400 3.00 9,000 2,400 5,000 7,400 2.00 13,000 3.400 5,000 8,400 1.00 20,000 10,000 5,000 15,000 0.50 45,000 31,250 5,000 36,250 0.30Donut Shop Monopoly Dunkin' Donuts Quantity Variable Fixed Total Total Costs Costs Price Profit Marginal Marginal Costs Revenue Costs Revenue 2,000 $500 $8,500 $9,000 $ 4.00 $ 8,000.00 $(1,000.00) 3,000 $750 $8,500 $9,250 $ 3.50 $10,500.00 $ 1,250.00 $ 0.25 $ 2.50 5,000 $1,250 $8,500 $9,750 $ 3.00 $15,000.00 $ 5,250.00 $ 0.25 $ 2.25 10,000 $2,500 $8,500 $11,000 $ 2.00 $20,000.00 $ 9,000.00 0.25 1.00 15,000 $3,750 $8,500 $12,250 $ 1.00 $15,000.00 $ 2,750.00 $ 0.25 $ (1.00) 25,000 $6,250 $8,500 $14,750 $ 0.50 $12,500.00 $(2,250.00) 0.25 $ (0.25) 50,000 $12,500 $8,500 $21,000 $ 0.30 $15,000.00 $(6,000.00) $ 0.25 $ 0.10 Dunkin' Donuts assumes you, like all the other locally owned shops, will choose to close rather than compete, and they will have a monopoly on donut sales in your area. If they made that assumption, o What quantity of donuts would they be most likely to sell to maximize profits? Their best profit would come between 10,000 and 15,000 donuts. o What price would they charge per donut? At that point they would charge between $1.00 and $2.00 per donut.Review the Donut Shop assignment. How do Dunkin' Donuts' production and pricing compare with the production and pricing of your area's donut shops when there was a perfectly competitive market? Other companies would be able to compete with them normally if their price doesn't go below $1, but once Dunkin 'Donuts 'goes to $1 and lower, other donut shops would nd themselves uncapable to compete. What could Dunkin' Donuts do to create barriers that would prevent others from entering the market and make it harder for you to remain in the market? They could focus on the production of the quantity of donuts that would give them the chance to sell their product at the lowest price, but still keeping some prot. In this case would be at $I(and 15,000 units), which means that they wouldn't get the highest possible prot, but the majority of other companies including ours would have a hard time entering the market or even keeping them there. If the}r take those measures, what could you do to remain in the market? One alternative would be to look for ways to lower my case: of production, JI'ind a way to differentiate my product from other brands ( maybe a unique avor or bundle), or even come up with new products that would make customer's day easier