a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors profit-maximizing output and price? Output: 75 thousands Price: $ 70 thousands Suppose that the government of Lidia imposes a price ceiling of $35.000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousands

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points.
b. What are Sol-Motors' profit-maximizing output and price?
75 thousands
70 thousands
c. Suppose that the government of Lidia imposes a price ceiling of $35.000 per car. What is the firm's profit-maximizing output now?
Profit-maximizing output:
thousands
Output:
Price: $
d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly?
Output:
thousands
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Transcribed Image Text:a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors' profit-maximizing output and price? 75 thousands 70 thousands c. Suppose that the government of Lidia imposes a price ceiling of $35.000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands Output: Price: $ d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousands Prev Search S 4 of 11 SAMSUNG
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Quantity per period (in thousands)
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Transcribed Image Text:Costs and revenues (in thousands) 99 15 30 45 60 75 901052013550165 80195 Quantity per period (in thousands) Tools 1 O <Prev ww 4 of 11 Ⓡ Next > A
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