The following graph illustrates the demand curve facing a single-price monopolist. Suppose the monopolist Initially sells its output at $50 per unit. Then it raises its price to $60 per unit. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from selling fewer units of output. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling each unit of output at a higher price. ? PRICE (Dollars) 100 8 90 80 70 60 50 40 30 20 10 0 0 20 40 Demand. 60 60 100 120 140 160 180 200 QUANTITY (Units) This monopolist's marginal revenue equals $ Revenue Lost Revenue Gained (Hint: Enter the negative sign, if necessary.)

The following graph illustrates the demand curve facing a single-price monopolist. Suppose the monopolist Initially sells its output at $50 per unit. Then it raises its price to $60 per unit. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from selling fewer units of output. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling each unit of output at a higher price. ? PRICE (Dollars) 100 8 90 80 70 60 50 40 30 20 10 0 0 20 40 Demand. 60 60 100 120 140 160 180 200 QUANTITY (Units) This monopolist's marginal revenue equals $ Revenue Lost Revenue Gained (Hint: Enter the negative sign, if necessary.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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