Price 50 45 40 35 30 25 20 15 10 5 0 -5 O O + 100 200 300 400 500 600 700 800 900 1000 Quantity (Thousands of copies) Marginal Revenue Marginal Cost The marginal-revenue and marginal-cost curves intersect at a quantity of Demand Deadweight Loss copies. On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss. If the author were paid $400,000 instead of $500,000 to write the book, the publisher would novel. the price it charges for a copy of the Suppose the publisher was not profit-maximizing but was concerned with maximizing economic efficiency, and the author of a novel was paid $500,000 to write the book. In this case, the publisher would charge $ for a copy of the novel and earn a profit of $ experiences a loss, be sure to enter a negative number for profit.) (Note: If the publisher
Price 50 45 40 35 30 25 20 15 10 5 0 -5 O O + 100 200 300 400 500 600 700 800 900 1000 Quantity (Thousands of copies) Marginal Revenue Marginal Cost The marginal-revenue and marginal-cost curves intersect at a quantity of Demand Deadweight Loss copies. On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss. If the author were paid $400,000 instead of $500,000 to write the book, the publisher would novel. the price it charges for a copy of the Suppose the publisher was not profit-maximizing but was concerned with maximizing economic efficiency, and the author of a novel was paid $500,000 to write the book. In this case, the publisher would charge $ for a copy of the novel and earn a profit of $ experiences a loss, be sure to enter a negative number for profit.) (Note: If the publisher
ChapterA: Working With Diagrams
Section: Chapter Questions
Problem 2QP
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Transcribed Image Text:Use the black points (plus symbol) to graph the marginal revenue from the 100,000th, 200,000th, 300,000th, 400,000th, 500,000th, and 600,000th
copy of the novel. Remember to plot from left to right and to plot between integers. For example, if the marginal revenue of increasing production
from 100,000 copies to 200,000 copies were 10, then you would plot a point at (150, 10). Next use the orange line (square symbol) to graph the
marginal-cost curve faced by the publisher. Finally, use the blue points (circle symbol) to graph demand at the following quantities (in thousands): 0,
100, 200, 300, 400, 500, 600, 700, 800, 900, and 1,000.
Transcribed Image Text:Price
50
45
40
35
30
25
20
15
10
5
0
-5
O
0
100
+
200 300 400 500 600 700 800 900 1000
Quantity (Thousands of copies)
Marginal Revenue
Marginal Cost
The marginal-revenue and marginal-cost curves intersect at a quantity of
Demand
Deadweight Loss
copies.
On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss.
If the author were paid $400,000 instead of $500,000 to write the book, the publisher would
novel.
the price it charges for a copy of the
Suppose the publisher was not profit-maximizing but was concerned with maximizing economic efficiency, and the author of a novel was paid
$500,000 to write the book.
In this case, the publisher would charge $ for a copy of the novel and earn a profit of $
experiences a loss, be sure to enter a negative number for profit.)
. (Note: If the publisher
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