Please see attachments and type out the correct answer ASAP with proper explanation of the each sub question given . Will give you upvotes only for the correct answer. Thank you. Answer within 40 min. MoTrueincrease production from 8 to 9 fire engines because theTrue or False: If alternatively Mo's HookNLadder were a competitive firm and $80,000 were the market price for an engine, increasing productionwould not affect the price at which the company is able to sell engines.Falsedominates in this scenario. Mo's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Mo initially produced eight trucks, but then decidedto increase production to nine trucks. The following graph gives the demand curve faced by Mo's HookNLadder. As the graph shows, in order to sell theadditional fire truck, Mo must lower the price from $80,000 to $40,000 per truck. Notice that Mo gains revenue from the sale of the additional engine,but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price.Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 ratherthan $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at$40,000.PRICE (Thousands of dollars per fire engine)2202001801601401201008060402000125 6QUANTITY (Fire engines)378Demand+910Revenue LostRevenue Gained(?)

A perfectly competitive market is a theoretical market body where all companies offer homogeneous…

Mo True increase production from 8 to 9 fire engines because the True or False: If alternatively Mo's HookNLadder were a competitive firm and $80,000 were the market price for an engine, increasing production would not affect the price at which the company is able to sell engines. False dominates in this scenario.

Mo True increase production from 8 to 9 fire engines because the True or False: If alternatively Mo's HookNLadder were a competitive firm and $80,000 were the market price for an engine, increasing production would not affect the price at which the company is able to sell engines. False dominates in this scenario.

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

Please see attachments and type out the correct answer ASAP with proper explanation of the each sub question given . Will give you upvotes only for the correct answer. Thank you. Answer within 40 min.

Mo
True
increase production from 8 to 9 fire engines because the
True or False: If alternatively Mo's HookNLadder were a competitive firm and $80,000 were the market price for an engine, increasing production
would not affect the price at which the company is able to sell engines.
False
dominates in this scenario.

Mo's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Mo initially produced eight trucks, but then decided
to increase production to nine trucks. The following graph gives the demand curve faced by Mo's HookNLadder. As the graph shows, in order to sell the
additional fire truck, Mo must lower the price from $80,000 to $40,000 per truck. Notice that Mo gains revenue from the sale of the additional engine,
but at the same time, he loses revenue from the initial eight engines because they are all sold at the lower price.
Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $40,000 rather
than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at
$40,000.
PRICE (Thousands of dollars per fire engine)
220
200
180
160
140
120
100
80
60
40
20
0
0
1
2
5 6
QUANTITY (Fire engines)
3
7
8
Demand
+
9
10
Revenue Lost
Revenue Gained
(?)

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