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Given the following diagram: Instructions: Make sure the interactive is set to Natural Monopoly on the upper right side of the Graph section. When Natural
Given the following diagram: Instructions: Make sure the interactive is set to "Natural Monopoly" on the upper right side of the Graph section. When "Natural Monopoly" is selected, it will have a dark blue background. Note: The tool will calculate the MR, MC, revenue (i.e., total revenue), cost (i.e., total cost), and profit (i.e., economic profit) from producing that quantity and selling at the market price. Click "Show Deadweight Loss" and "Show Economic Profit/Loss" above the graph to have the tool shade the firm's economic profits or losses and deadweight loss areas. Suggestion: It may help to have the Show Deadweight Loss and Show Profit/Loss at the top of the Graph set to "On." Be sure to include a negative (-) sign when needed. Round your answer to a whole number for part a); and round your answer to two decimal places for parts b), c), d), and e). With the Cost Structure (in the settings section) set to "j" a. What is the profit maximizing quantity? 42 units b. What is the maximum profit (minimum loss) that can be earned? $ -195 c. What is the marginal revenue? $ 95 d. What is the marginal cost? $ 95 e. What is the profit maximizing / loss minimizing price? $ 147.50
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