GRAPH Show Deadweight Loss off Show Economic Profit/Loss ($) Price, Average/Marginal Cost Regular Monopoly Natural Monopoly Off SETTINGS 225 200 175 MC 150 125 100 75 50 25 ATC AVC MR D 0 20 40 60 80 100 120 140 160 180 Quantity (units per month) Reset PROFIT CALCULATIONS Cost Structure Low Cost abcdefghijklmno Quantity 40 Quantity 60 Market Price (Pmkt) $125.00 High Cost Marginal Revenue (MR) $50.00 Marginal Cost (MC) $55.00 Revenue $7,500.00 120 Costs $5,066.67 Profit $2,433.33 nstructions: Make sure the interactive is set to "Regular Monopoly" on the upper right side of the Graph section. When "Regular Monopoly" is selected, it will have a dark blue background. a. Describe how the cost curves change when you move the "cost structure" slider from low to high. All of the cost curves shift up. b. Describe the two points on the graph that move as you adjust the Quantity slider. The point where MC intersects MR. The point on the D curve for the chosen quantity. The point where MC intersects D. The point on the ATC curve for the chosen quantity. The point on the MC curve for the chosen quantity.
GRAPH Show Deadweight Loss off Show Economic Profit/Loss ($) Price, Average/Marginal Cost Regular Monopoly Natural Monopoly Off SETTINGS 225 200 175 MC 150 125 100 75 50 25 ATC AVC MR D 0 20 40 60 80 100 120 140 160 180 Quantity (units per month) Reset PROFIT CALCULATIONS Cost Structure Low Cost abcdefghijklmno Quantity 40 Quantity 60 Market Price (Pmkt) $125.00 High Cost Marginal Revenue (MR) $50.00 Marginal Cost (MC) $55.00 Revenue $7,500.00 120 Costs $5,066.67 Profit $2,433.33 nstructions: Make sure the interactive is set to "Regular Monopoly" on the upper right side of the Graph section. When "Regular Monopoly" is selected, it will have a dark blue background. a. Describe how the cost curves change when you move the "cost structure" slider from low to high. All of the cost curves shift up. b. Describe the two points on the graph that move as you adjust the Quantity slider. The point where MC intersects MR. The point on the D curve for the chosen quantity. The point where MC intersects D. The point on the ATC curve for the chosen quantity. The point on the MC curve for the chosen quantity.
Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 7P
Related questions
Question
Transcribed Image Text:GRAPH
Show Deadweight Loss off Show Economic Profit/Loss
($) Price, Average/Marginal Cost
Regular Monopoly Natural Monopoly
Off
SETTINGS
225
200
175
MC
150
125
100
75
50
25
ATC
AVC
MR
D
0 20 40 60
80
100 120 140 160 180
Quantity (units per month)
Reset
PROFIT CALCULATIONS
Cost Structure
Low
Cost
abcdefghijklmno
Quantity
40
Quantity
60
Market Price (Pmkt)
$125.00
High
Cost
Marginal Revenue (MR)
$50.00
Marginal Cost (MC)
$55.00
Revenue
$7,500.00
120
Costs
$5,066.67
Profit
$2,433.33
nstructions: Make sure the interactive is set to "Regular Monopoly" on the upper right side of the Graph section. When "Regular
Monopoly" is selected, it will have a dark blue background.
a. Describe how the cost curves change when you move the "cost structure" slider from low to high.
All of the cost curves shift up.
b. Describe the two points on the graph that move as you adjust the Quantity slider.
The point where MC intersects MR.
The point on the D curve for the chosen quantity.
The point where MC intersects D.
The point on the ATC curve for the chosen quantity.
The point on the MC curve for the chosen quantity.
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