4. Profit maximization and loss minimization Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC], marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagall Green faces for beer in Lightingtion. Place the black point (pius symbol) on the graph to i maximizing price and quantity for Lagatt Green. IT Lagall Green is making a profit, use the green mbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss. use the purple rectangle (diamond symbols) to shade in the area representing its loss Monopoly Outcome 2 50 Profit PRICE (Dollars per bottle) Suppose Lagatt Green charges $2 50 per bottle. Your study partner Adrian says that bee use Lagatt Green is a monopoly with market power, it should charge the higher price of $3.00 per bottle in order to increase its profit Complete the following table to determine whether Adrian is correct. Price Quantity Demanded Total Revenue Total Cost Profit (Dollars per bottle) (Cans) (Dollars) Dollars) (Dollars) 2 50 3.00 Given the earlier information, Adrian correct in his assertion that Lagatt Green should charge $3.00 per bottle Suppose that a technological Innovation Lagatt Green's co hel cost (MC) and average total cost (ATC) given on the following graph, Spedfically, average fixed costs, thereby lowering the ATC curve and moving the MC curve. Place the back point (plus symbol) on the Maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, If Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing the loss. 3.50 Monopoly Outcome 3.50 2.50 Profit PRICE (Dollars per unit) 2.00 1.30 ATC 1.60 QUANTITY (Thousands of bottles of beer)