Complete the following table to determine whether Musashi is correct. If BYOB is suffering a loss, enter a negative value for profit. Total Revenue Total Cost Profit Price Quantity Demanded (Dollars per can) (Cans) (Dollars) (Dollars) (Dollars) 2.75 3.00 Given the earlier information, Musashi correct in his assertion that BYOB should charge $3.00 per can. Suppose that a technological innovation decreases BYOB's costs so that it now faces the marginal cost (MC) and average total cost (ATC) give the following graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and mo the MC curve. Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profi 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 purpl rectangle (diamond symbols) to shade in the area representing the loss. 4.00 3.50 Monopoly Outcome 3.00 2.50 Profit 200 ATO PER UNT (Dollars per unit)

Complete the following table to determine whether Musashi is correct. If BYOB is suffering a loss, enter a negative value for profit. Total Revenue Total Cost Profit Price Quantity Demanded (Dollars per can) (Cans) (Dollars) (Dollars) (Dollars) 2.75 3.00 Given the earlier information, Musashi correct in his assertion that BYOB should charge $3.00 per can. Suppose that a technological innovation decreases BYOB's costs so that it now faces the marginal cost (MC) and average total cost (ATC) give the following graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and mo the MC curve. Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profi 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 purpl rectangle (diamond symbols) to shade in the area representing the loss. 4.00 3.50 Monopoly Outcome 3.00 2.50 Profit 200 ATO PER UNT (Dollars per unit)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

ework (Ch 09)
4.00
3.50
Monopoly Outcome
3.00
ATC
2.50
Profit
2.00
1.50
Loss
MC
1.00
K 0.50
D
2.0
QUANTITY OF OUTPUT (Thousands of cans of beer)
0.5
1.0
1.5
2.5
3.0
35
4.0
Suppose that BYOB charges $2.75 per can. Your friend Musashi says that since BYOB is a monopoly with market power, it should charge a higher p
of $3.00 per can because this will increase BYOB's profit.
Complete the following table to determine whether Musashi is correct. If BYOB is suffering a loss, enter a negative value for profit.
Price
(Dollarc nor can)
Quantity Demanded
Total Revenue
Total Cost
Profit
nollare)
nallare)
IDallare-1
17 +
ho.
144
DII
DDI
&
*
5.
6.
7.
8.
ba
R
PRICE AND COST PER UNIT (Dollars per can)

* MindTap - Cengage Learning
X +
Homework (Ch 09)
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E: CENGAGE MINDTAP
Homework (Ch 09)
Complete the following table to determine whether Musashi is correct. If BYOB is suffering a loss, enter a negative value for profit.
Total Revenue
Total Cost
Profit
Price
Quantity Demanded
(Dollars per can)
(Cans)
(Dollars)
(Dollars)
(Dollars)
2.75
3.00
Given the earlier information, Musashi
correct in his assertion that BYOB should charge $3.00 per can.
Suppose that a technological innovation decreases BYOB's costs so that it now faces the marginal cost (MC) and average total cost (ATC) give
the following graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and mo
the MC curve.
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profi
use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purpl
rectangle (diamond symbols) to shade in the area representing the loss.
of
4 00
3.50
Monopoly Outcome
3.00
2 50
Profit
2.00
ATO
19
144
ho. PII
DDI
2$
&
*
6.
bac

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