A monopoly faces the demand curve

P=110.5Q,

where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6.00 per unit.

Draw the average and marginal revenue curves and the average and marginal cost curves.

1.) Using the line drawing tool, draw the average revenue curve and label it'AR'.

2.) Using the line drawing tool, draw the marginal revenue curve and label it'MR'.

3.) Using the line drawing tool, draw the average cost curve and label it'AC'.

4.) Using the line drawing tool, draw the marginal cost curve and label it'MC'.

Carefully follow the instructionsabove, and only draw the required objects.

What are themonopolist's profit-maximizing price andquantity?

Themonopoly's profit-maximizing quantity is $

nothing

thousand units. (Enter all responses rounded to two decimalplaces.)

Theprofit-maximizing price is $

nothing

.

What is the resultingprofit?

Profit is $

nothing

thousand.

Calculate the degree of monopoly power using the Lerner Index.

The degree of monopoly power is

nothing

.

A government regulatory agency sets a price ceiling of $8.00 per unit. What quantity will beproduced, and what will thefirm's profitbe?

The monopoly with the price ceiling will produce

nothing

thousand units of output.

Profit will be $

nothing

thousand.

What happens to the degree of monopolypower?

Monpoly power will

still be

decrease to

increase to

nothing

according to the Lerner Index.

What price ceiling yields the largest level ofoutput?

Output will be maximized at a price ceiling of $

nothing

.

What is thefirm's degree of monopoly power at thisprice?

Monopoly power at this price according to the Lerner Index will be

nothing

.

A monopoly faces the demand curve P = 11 -0.5Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6.00 per unit Draw the average and marginal revenue curves and the average and marginal cost curves. 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'. $/Q 2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'. 3.) Using the line drawing tool, draw the average cost curve and label it 'AC'. 4.) Using the line drawing tool, draw the marginal cost curve and label it 'MC'. Carefully follow the instructions above, and only draw the required objects. What are the monopolist's profit-maximizing price and quantity? 2 6 8 10 12 14 16 18 20 22 24 26 The monopoly's profit-maximizing quantity is $ | thousand units. (Enter all responses rounded to two decimal places.) Quantity (thousands) The profit-maximizing price is $ What is the resulting profit?What is the resulting prot? Prot is $|:| thousand. Calculate the degree of monopoly power using the Lerner Index. The degree of monopoly power is D A government regulatory agency sets a price ceiling of $8.00 per unit. What quantity will be produced, and what will the rm's prot be? The monopoly with the price ceiling will produce D thousand units of output. Prot will be $D thousand. What happens to the degree of monopoly power? Monpoly power will |:| |:| according to the Lerner Index. What price ceiling yields the largest level of output? Output will be maximized at a price ceiling of $|:. What is the nn's degree of monopoly power at this price? The degree of monopoly power is |_l. Agovernment regulatory agency sets a price ceiling of $3.00 per unit. What quantity will he produced: and what will the rm's prot he? The monopoly with the price ceiling will produce :l thousand units of output. Prot will be $D thousand. What happens to the degree of monopoly power? Monpoly power will 1" I: according to the Lerner Index. What price ceiling yields the largest level of output? Output will be maximized at a price ceiling of 33D. What is the rm's degree of monopoly power at this price? Monopoly power at this price according to the Lerner Index will be |:|