Back to Assignment Attempts Average / 3 4. Total and average revenue of a monopolist Suppose that Musashi is the only seller of kumquats in a small town. The following graph shows the demand and marginal revenue (MR) curves facing Musashi. Use the green rectangle labeled Total Revenue (triangle symbols) to compute total revenue at various prices along the demand curve. To see the area of the Total Revenue rectangle, click the shaded area with your mouse. (Note: You will not be graded on where you place the rectangle.) (?) his Total Revenue PRICE (Dollars per basket) N MR Demand 8 12 16 20 24 28 32 36 40 QUANTITY (Thousands of baskets per year)On the following graph, use the green points (triangle symbol) to plot annual total revenue at prices of $7.00, $6.00, $5.00, $4.00, $3.00, $2.00, and $1.00 per basket of kumquats. Be sure to use all of the points provided. Line segments will automatically connect the points. Then, consider the quantity of kumquats at which Musashi's marginal revenue exactly equals zero. Place a grey point (star symbol) on the total revenue curve to indicate this quantity. Note: Drop lines will automatically extend to both axes. A 72 Total Revenue 84 58 48 40 TOTAL REVENUE (Thousands of dollars per year) 32 24 16 co 8 2 16 20 24 28 32 36 40 QUANTITY (Thousands of baskets per year)If Musashi sells 8,000 baskets at the highest price consumers are willing to pay according to the demand curve, his average revenue will be S per basket. Consider the elasticity of demand along the demand curve. Even though the cost curves are not shown, you can conclude that Musashi will produce: More than 16,000 baskets, but no more than 32,000 baskets No more than 16,000 baskets More than 32,000 baskets