I'm not sure if I am doing this correctly, also not sure where the profit and loss go on the graphs. 4. Profit maximization and loss minimizationBYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is,it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average totalcost (ATC), and demand (D) for beer in this market.Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use thegreen rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle(diamond symbols) to shade in the area representing its loss.PRICE AND COST (Dollars per can)4.003.503.002.502.001.501.000.50MC00.5ATCMR1.02.53.01.5 2.0QUANTITY (Thousands of cans of beer)3.5D4.0Monopoly OutcomeProfitLoss?Suppose that BYOB charges $2.75 per can. Your friend Bob says that since BYOB is a monopoly with market power, it should charge a higher price of$3.00 per can because this will increase BYOB's profit. Complete the following table to determine whether Bob is correct.Price(Dollars per can)2.753.00PRICE AND COST (Dollars per unit)4.003.503.002.50Given the earlier information, Bob is not correct in his assertion that BYOB should charge $3.00 per can.2.00Suppose that a technological innovation decreases BYOB's costs so that it now faces the marginal cost (MC) and average total cost (ATC) given onthe following graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and movingthe MC curve.1.50Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit,use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purplerectangle (diamond symbols) to shade in the area representing the loss.1.000.500Quantity Demanded Total Revenue(Dollars)MC0(Cans)1,2501,0000.51.53,437.503,000.00ATCMR1.02.02.53.0QUANTITY (Thousands of cans of beer)Total Cost(Dollars)3.53,750.00D4.0Profit(Dollars)Monopoly Outcome-750.00ProfitLoss?

A monopolist is a single firm in the market producing unique good, without facing any competition…

4. Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE AND COST (Dollars per can) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 MC 0 0.5 ATC MR 1.0 3.0 1.5 2.0 2.5 QUANTITY (Thousands of cans of beer) 3.5 D 4.0 Monopoly Outcome Profit Loss (?) Suppose that BYOB charges $2.75 per can. Your friend Bob says that since BYOB is a monopoly with market power, it should charge a higher price of $3.00 per can because this will increase BYOB's profit.