Instructlons: Make sure the interoctive is set to "Nstursl Monopoly" on the upper right side of the Grsph section. When "Nstural Monopoly' is selected, it will have a dark blue bockground. With the Cost Structure (In the settlings section) ?set to "a" ?What is the profit maximizing quentity? units b. ?What is the maximum profit that can be earned? $ With the Cost Structure (in the settings section) ?set to "? ?c. ?What is the profit maximizing quantity? d. ?What is the maximum profit that can be earned? $ Let the Cost Structure remain at "? ?e. ?If the firm decides to produce 80 ?units (where the average total cost equols demand -.?=ATC ) ?the Revenue is $ , ?the Costs are $ , ?and profits are $

SETTINGS PROFIT CALCULATIONS Market Price (P.) $125.00 Cost Structure LOW $50.00 Cant Marginal Revenue [MR) Marginal Cost [MC) $50.00 Quantity Revenue $7,500.00 120 $5,400.00 Quantity 60 Proll $2,100.00 Instructions: Make sure the interactive is get to "Natural Monopoly" on the upper right side of the Graph section. When "Natural Monopoly" is selected, it will have a dark blue background. With the Cost Structure (in the settings section] set to "a" a. What is the profit maximizing quantity? 7units b. What is the maximum profit that can be earned? $[ With the Cost Structure (In the settings section) set to "e" c. What is the profit maximizing quantity? units d. What is the maximum profit that can be earned? $ Let the Cost Structure remain at "a" a. If the firm decides to produce 80 units (where the average total cost equals demand . P= ATC) the Revenue is $. the Costs are $ . and profits are $Show Deadwright Loan Show Economic Pratt/Lom (5) Price, Average/Marginal Cost 225 200 150 ATC MC=AVC MR D 20 40 120 140 160 180 Quantity (units per month) OF SETTINGS PROFIT CALCULATIONS Market Price (P.) $125.00 Cost Structure LOW Marginal Revenue [MR) $50.00 Cast Cant Marginal Cost [MC) $50.00 Quantity Revenue $7,500.00