Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 13, Problem 2.8P
To determine
Impact of banning paid prioritization.
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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 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 the loss.
4.00
3.50
Monopoly Outcome
3.00
2.50
Profit
2.00
АТC
1.50
Loss
1.00
0.50
MC
MR
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
QUANTITY (Thousands of cans of beer)
PRICE (Dollars per unit)
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.
4.00
3.50
Monopoly Outcome
3.00
2.50
Profit
АТС
2.00
Loss
1.50
1.00
MC
0.50
D
MR
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
QUANTITY (Thousands of cans of beer)
PRICE (Dollars per can)
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and combined quantity of output if Mays and
McCovey choose to work together.
2.00
Demand
1.80
Monopoly Outcome
1.60
1.40
MC = ATC
1.20
1.00
0.80
0.60
0.40
0.20
MR
90
180
270 360 450 540 630
720 810 900
QUANTITY (Cans of beer)
PRICE (Dollars per can)
Chapter 13 Solutions
Principles of Economics (12th Edition)
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