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Question 1

The graph below shows the demand curve and cost data for a firm operating as a monopolist.

Graphing window shows horizontal axis: 0 to 30, vertical axis: 0 to 30. Start Graph, Color red
xy
020
119.5
219
318.5
418
517.5
617
716.5
816
915.5
1015
1114.5
1214
1313.5
1413
1512.5
1612
1711.5
1811
1910.5
2010
219.5
229
238.5
248
257.5
267
276.5
286
295.5
305
Start Graph, Color blue
xy
020
119
218
317
416
515
614
713
812
911
1010
119
128
137
146
155
164
173
182
191
200
21-1
22-2
23-3
24-4
25-5
26-6
27-7
28-8
29-9
30-10
Start Graph, Color black
xy
00
11.2
22.4
33.6
44.8
56
67.2
78.4
89.6
910.8
1012
1113.2
1214.4
1315.6
1416.8
1518
1619.2
1720.4
1821.6
1922.8
2024
2125.2
2226.4
2327.6
2428.8
2530
2631.2
2732.4
2833.6
2934.8
3036
Label "Quantity of Zippers" at pixel coordinates (175,0).Label "Price of Zippers" at pixel coordinates (0,170).

The blue line shows:

 

Hint


Question 2

The red line shows:

 

Hint


Question 3

The black line shows:

 

Hint


Question 4

The profit maximizing quantity for this monopolist is:

 

Hint


Question 5

What price will the monopolist set in order to maximize profits (or minimize losses)?

 

Hint