3. The components of marginal revenue Omari's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Omari initially produced seven trucks, but then decided to increase production to eight trucks. The following graph gives the demand curve faced by Omari's HookNLadder. As the graph shows, in order to sell the additional fire truck, Omari must lower the price from $100,000 to $50,000 per truck. Notice that Omari 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. 275 250 Revenue Lost 225 200 175 Revenue Gained g PRICE (Thousands of dollars per fire engine) 125 Demand 100 75 50 25 6 8 10 2 3 7Omari Y increase production from 7 to 3 re engines because the V dominates in this scenario. True or False: If alternatively Omari's HookNLadder were a competitive rm and $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in the same change in the production quantity and, thus, total revenue. {3' True {3- False