3. The components of marginal revenue Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Karim initially produced seven trucks, but then decided to increase production to eight trucks. The following graph gives the demand curve faced by Karim's HookNLadder, As the graph shows, In order to sell the additional fire truck, Karim must lower the price from $100,000 to $50,000 per truck. Notice that Karim gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial seven engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial seven engines by selling at $50,000 rather than $100,000, Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. (?) 275 259 Revenue Lost Revenue Gained PRICE (Thousands of dollars per fire engine) Demand QUANTITY (Fire engines) Karim increase production from 7 to $ fire engines because the dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $100,000 were the market price for an engine, increasing production would not affect the price at which the company is able to sell engines. True False