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Question 1

The graph below shows demand curve and cost data for a firm operating as a monopolist. The green line shows average total costs (ATC), and the black line shows marginal cost (MC).

Graphing window shows horizontal axis: 0 to 30, vertical axis: 0 to 30. Start Graph, Color red
xy
030
129.5
229
328.5
428
527.5
627
726.5
826
925.5
1025
1124.5
1224
1323.5
1423
1522.5
1622
1721.5
1821
1920.5
2020
2119.5
2219
2318.5
2418
2517.5
2617
2716.5
2816
2915.5
3015
Start Graph, Color blue
xy
030
129
228
327
426
525
624
723
822
921
1020
1119
1218
1317
1416
1515
1614
1713
1812
1911
2010
219
228
237
246
255
264
273
282
291
300
Start Graph, Color black
xy
00
10.6
21.2
31.8
42.4
53
63.6
74.2
84.8
95.4
106
116.6
127.2
137.8
148.4
159
169.6
1710.2
1810.8
1911.4
2012
2112.6
2213.2
2313.8
2414.4
2515
2615.6
2716.2
2816.8
2917.4
3018
Start Graph, Color green
xy
125.3
213.1
39.233
47.45
56.5
65.967
75.671
85.525
95.478
105.5
115.573
125.683
135.823
145.986
156.167
166.362
176.571
186.789
197.016
207.25
217.49
227.736
237.987
248.242
258.5
268.762
279.026
289.293
299.562
309.833
Label "Quantity of Zippers" at pixel coordinates (175,0).Label "Price of Zippers" at pixel coordinates (0,170).

At the profit maximizing (loss minimizing) quantity, the monopolist is experiencing

 

Hint