Microeconomics Section 2 Time-20 minutes Directions: You will have 20 minutes to answer the following question. Include correctly labeled diagrams, if useful or | Question required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. Use a pen with black or dark blue ink. I. Joyce owns a gas station and monopolizes gas sales along a remote stretch of road. In February, Joyce stayed open even though she earned negative economic profits. Draw a correctly labeled graph for Joyce's gas on for Joyce's gas station during February and show each of the following it-maximizing output and price, labeled QJ and PJ The average total cost curve, labeled ATC Deadweight loss, completely shaded What must have been true for Joyce to continue operating during the month of February even though she earned negative economic profit? Assume that fixed costs for Joyce's gas station decrease, Would Joyce's profit-maximizing quantity increase, decrease, or stay the same in February? Explain. During the month of July, demand increases so that Joyce now earns a positive economic profit. ver, she realizes her profits would have been high have been higher if she had reduced the price of gasol the quantity sold in July, was marginal revenue greater ater than, equal to, or less than marginal cost? he price decrease cause quantity demanded to increase, decrease, or stay the same? Would the price decrease cause the total revenue to increase, decrease, or stay the same? Explain