Monsanto Company is a publicly-traded American multinational agrochemical and agricultural biotechnology corporation. It is headquartered in Creve Coeur, Greater St. Louis, Missouri. Monsanto is a leading producer of genetically engineered (GE) seed and Roundup, a glyphosate-based herbicide. " As such, this firm can be considered as a monopolist in seed production and distribution in the world for the special types of GMO seeds it produces. Monsanto's line of seed products includes corn, cotton, soy and vegetable seeds. In particular, in this question, we are concerned with one of its GMO corn seeds, for which it has a patent and thereby a pricing power. Also, suppose that Monsanto cannot price discriminate; that is, it sells its GMO corn seeds at the same price per bag to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for its GMO corn seeds in this market. (When working with the numbers on the diagram, you can round the values to the nearest multiple of 25, e.g., 25, 50, 75, etc.) 1. https://en.wikipedia.org/wiki/Monsant 2. Genetically Modified Organism 400 350 300 250 200 ATC Costs and Price (Dollars per bag) 150 100 50 MC MR 0 0.5 1.0 1.5 2.0 2.5 3.0 3.54 Quantity (Million bags of GMO corn seeds)Question 19: Suppose that Monsanto currently charges $250 per bag. Your classmate says that since Monsanto is a monopoly with market power, it should charge a higher price of $300 per bag, because this WIII Increase Monsanto's prot from the GMO corn seed production. Compute the prot in this case (when the price is $300 per bag), and say if the prot increases or decreases, compared to when it charges $250 per bag. 0 New total prot = $50, so it will increase. 0 New total prot = $5, so it will increase. 0 New total prot 2 $5, so it will decrease. 0 New total prot = $50,000,000, so it will increase. 0 New total prot = $50, so it will decrease. 0 New total prot 2 $50,000,000, so it will decrease