For the monopoly represented by the figure to the right, at what quantity is its revenue maximized? (Hint: Revenue is maximize where MR = 0.) Why is revenue maximized at a larger quantity than profit? Show the revenue curve. In the figure to the right, let D be demand and MR be marginal revenue. The quantity at which revenue is maximized is Q= 10 units. (Enter your response rounded to the nearest whole number.) Revenue is maximized at a larger quantity than profit because OA. costs are decreasing in output. OB. marginal costs can be negative. c. marginal revenue is decreasing in output. O D. revenue is greater than profit. OE. profit is decreasing in output. Using the three-point curved line drawing tool, graph the monopoly's revenue curve. Label this curve 'R.' Carefully follow the instructions above, and only draw the required objects. o, $ per unit p. $ per unit 30 28- 26- 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 0 100T 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 0 MR 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Q, Quantity 2 4 6 +H 8 10 12 14 16 18 20 22 24 26 28 30 Q, Quantity

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question
For the monopoly represented by the figure to the right, at what quantity is its
revenue maximized?
(Hint: Revenue is maximize where MR = 0.)
Why is revenue maximized at a larger quantity than profit? Show the revenue
curve.
In the figure to the right, let D be demand and MR be marginal revenue.
The quantity at which revenue is maximized is
Q = 10 units. (Enter your response rounded to the nearest whole number.)
Revenue is maximized at a larger quantity than profit because
A. costs are decreasing in output.
OB. marginal costs can be negative.
C. marginal revenue is decreasing in output.
OD.
D. revenue is greater than profit.
OE. profit is decreasing in output.
Using the three-point curved line drawing tool, graph the monopoly's revenue
curve. Label this curve 'R.'
Carefully follow the instructions above, and only draw the required objects.
p. $ per unit
30
28-
26-
24-
22-
20-
18-
16-
14-
12-
10-
8-
6-
4-
2-
0-
024
100-
90-
80-
70-
60-
50-
40-
30-
20-
10-
0-
6
MR
D
8
10 12 14 16 18 20 22 24 26 28 30
Q, Quantity
024 4 6 8 10 12 14 16 18 20 22 24 26 28 30
Q, Quantity
Transcribed Image Text:For the monopoly represented by the figure to the right, at what quantity is its revenue maximized? (Hint: Revenue is maximize where MR = 0.) Why is revenue maximized at a larger quantity than profit? Show the revenue curve. In the figure to the right, let D be demand and MR be marginal revenue. The quantity at which revenue is maximized is Q = 10 units. (Enter your response rounded to the nearest whole number.) Revenue is maximized at a larger quantity than profit because A. costs are decreasing in output. OB. marginal costs can be negative. C. marginal revenue is decreasing in output. OD. D. revenue is greater than profit. OE. profit is decreasing in output. Using the three-point curved line drawing tool, graph the monopoly's revenue curve. Label this curve 'R.' Carefully follow the instructions above, and only draw the required objects. p. $ per unit 30 28- 26- 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 024 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 6 MR D 8 10 12 14 16 18 20 22 24 26 28 30 Q, Quantity 024 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Q, Quantity
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