Sub : EconomicsPls answer very fast.I ll upvote. Thank You 8. Problems and Applications Q8Henry Potter owns the only well in town that produces clean drinking water. He faces the following demand, marginal revenue, and marginal costcurves:Demand:P = 70-QMarginal Revenue: MR = 70-20Marginal Cost:MC = 10 + QOn the following graph, use the blue line (circle symbol) to graph Mr. Potter's demand curve. Then, use the black line (cross symbol) to graph hismarginal revenue (MR) curve. Next, use the orange line (square symbol) to graph his marginal cost (MC) curve. Finally, use the grey point (starsymbol) to indicate the profit-maximizing price and quantity.Price (Dollars)80706050403020100-10-20-30-40-50-60-70-80010203040Quantity (Units)506070DemandMR0MCProfit-Maximization The profit-maximizing quantity isMayor George Bailey, concerned about water consumers, is considering a price ceiling that is 10% below the monopoly price.At this new price, the quantity demanded would beAt this quantity, the marginal cost would beamount.units, and the profit-maximizing price is $O TrueGeorge's Uncle Billy says that a price ceiling is a bad idea because price ceilings cause shortages.O FalseTrue or False: A price ceiling that is 10% below the monopoly price would cause a shortage.units.At this price, the quantity demanded would bethe price. Therefore, the profit-maximizing Mr. PotterGeorge's friend Clarence, who is even more concerned about consumers, suggests a price ceiling 50% below the monopoly price.TrueFalseTrue or False: A price ceiling 50% below the monopoly price would cause shortage.units, and the quantity supplied would beunits.produce this

Marginal revenue is the additional revenue generated by selling one additional unit of a product or…

8. Problems and Applications Q8 Henry Potter owns the only well in town that produces clean drinking water. He faces the following demand, marginal revenue, and marginal cost curves: Demand: P=70-Q Marginal Revenue: MR = 70-20 Marginal Cost: MC = 10 + Q On the following graph, use the blue line (circle symbol) to graph Mr. Potter's demand curve. Then, use the black line (cross symbol) to graph his marginal revenue (MR) curve. Next, use the orange line (square symbol) to graph his marginal cost (MC) curve. Finally, use the grey point (star 80 75 00 50 40 30 20 10 8.10 -20 -30 40 40 40 -70 -40 0 10 20 40 Quantity (Units) 60 00 70 -o Demand MR -P MC 0 Proft-Maximization ?

8. Problems and Applications Q8 Henry Potter owns the only well in town that produces clean drinking water. He faces the following demand, marginal revenue, and marginal cost curves: Demand: P=70-Q Marginal Revenue: MR = 70-20 Marginal Cost: MC = 10 + Q On the following graph, use the blue line (circle symbol) to graph Mr. Potter's demand curve. Then, use the black line (cross symbol) to graph his marginal revenue (MR) curve. Next, use the orange line (square symbol) to graph his marginal cost (MC) curve. Finally, use the grey point (star 80 75 00 50 40 30 20 10 8.10 -20 -30 40 40 40 -70 -40 0 10 20 40 Quantity (Units) 60 00 70 -o Demand MR -P MC 0 Proft-Maximization ?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section9.2: Perfect Competition In The Short Run

Problem 3ST

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