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The graph to the right illustrates performance differences for rms 1 and 2 (with marginal costs c1 and c2). Assume that both rms face the
The graph to the right illustrates performance differences for rms 1 and 2 (with marginal costs c1 and c2). Assume that both rms face the same demand curve. 1.) Using the point drawing tool, plot the prot-maximizing price and quantity for rm 1. Label this point 'E1'. 2.) Using the point drawing tool, plot the prot-maximizing price and quantity for rm 2. Label this point 'E2'_ Note: Carefully follow the instructions above and only draw the required objects. Firm 1 will set a E markup over marginal cost than rm 2. higher lower Cost, C and Price, P c* '32 M62 c1 MR Quantity 9,0
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