Regarding a Monopoly

For the following question use the graph below Price 12 11 10 - NWAUTO - OO OO 2 3 5 6 7 8 9 10 11 12 Q The above diagram shows the demand curve for a particular product. There exists a profit maximizing monopolist in this market. The marginal cost of producing the good is constant at $4 per unit and fixed costs are zero. Currently, the firm is producing 4 units. If the firm increases output by one unit the quantity effect will be -_, and the price effect will be . In this case, the profit maximizing firm will to increase production. O $4.00; - $7.00; want O $7.00; - $4.00; not want O - $4.00, $7.00; not want O - $7.00, $4.00; want O - $7.00, $4.00; not want