Answer everything in the photo please. Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not ableprice discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginalrevenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington.Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making aprofit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss,use the purple rectangle (diamond symbols) to shade in the area representing its loss.PRICE (Dollars per bottle)4.003.503.00 +2.50 +2.001.50 +MC1.00 +0.50 +000.5ATC1.5MR1.02.02.53.0QUANTITY (Thousands of bottles of beer)3.5D4.0+Monopoly OutcomeProfitLoss Suppose Lagatt Green charges $2.75 per bottle. Your study partner Taio says that because Lagatt Green is a monopoly with market power, it shouldcharge the higher price of $3.00 per bottle in order to increase its profit.Complete the following table to determine whether Taio is correct.Quantity Demanded.Total Revenue(Dollars)Price(Dollars per bottle)2.753.00Given the earlier information, TaioPRICE (Dollars per unit)4.00Suppose that a technological innovation decreases Lagatt Green's costs so that it now faces the marginal cost (MC) and average total cost (ATC) givenon the following graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and movingthe MC curve.3.50Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green ismaking a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is sufferinga loss, use the purple rectangle (diamond symbols) to shade in the area representing the loss.3.002.502.001.501.000.500MC(Cans)00.51.5ATCMR1.02.53.0QUANTITY (Thousands of bottles of beer)2.0correct in his assertion that Lagatt Green should charge $3.00 per bottle.Total Cost(Dollars)3.5D4.0+Profit(Dollars)Monopoly OutcomeProfitLoss

Since you need answers is photos, I am pasting the typed solutions screenshots.

Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. res

Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. res

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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