A monopoly faces the demand curve 14- P= 12 - 1.00, 13- 12- where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $4.00 per unit. 11 10- Draw the average and marginal revenue curves and the average and marginal cost curves. 9- 8- 0/$ 7- 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'. 6- 5- 2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'. * 7 4- MC 3- 3.) Using the line drawing tool, draw the average cost curve and label it 'AC'. 2- 1- MR AR 7 4.) Using the line drawing tool, draw the marginal cost curve and label it 'MC'. (.. 0- 0 be N- 4 6 8 10 12 14 16 18 20 22 24 26 Quantity (thousands) Carefully follow the instructions above, and only draw the required objects. What are the monopolist's profit-maximizing price and quantity? The monopoly's profit-maximizing quantity is $thousand units. (Enter all responses rounded to two decimal places.) The profit-maximizing price is $0 What is the resulting profit? Profit is $thousand. Calculate the degree of monopoly power using the Lerner Index. The degree of monopoly power is A government regulatory agency sets a price ceiling of $8.00 per unit. What quantity will be produced, and what will the firm's profit be? The monopoly with the price ceiling will produce thousand units of output. Profit will be $(thousand. What happens to the degree of monopoly power? What happens to the degree of monopoly power? Monpoly power will according to the Lerner Index. Nhat price ceiling yields the largest level of output? Output will be maximized at a price ceiling of s] What is the firm's degree of monopoly power at this price? Monopoly power at this price according to the Lerner Index will be A monopoly faces the demand curve 14- P= 12 - 1.00, 13- 12- where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $4.00 per unit. 11 10- Draw the average and marginal revenue curves and the average and marginal cost curves. 9- 8- 0/$ 7- 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'. 6- 5- 2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'. * 7 4- MC 3- 3.) Using the line drawing tool, draw the average cost curve and label it 'AC'. 2- 1- MR AR 7 4.) Using the line drawing tool, draw the marginal cost curve and label it 'MC'. (.. 0- 0 be N- 4 6 8 10 12 14 16 18 20 22 24 26 Quantity (thousands) Carefully follow the instructions above, and only draw the required objects. What are the monopolist's profit-maximizing price and quantity? The monopoly's profit-maximizing quantity is $thousand units. (Enter all responses rounded to two decimal places.) The profit-maximizing price is $0 What is the resulting profit? Profit is $thousand. Calculate the degree of monopoly power using the Lerner Index. The degree of monopoly power is A government regulatory agency sets a price ceiling of $8.00 per unit. What quantity will be produced, and what will the firm's profit be? The monopoly with the price ceiling will produce thousand units of output. Profit will be $(thousand. What happens to the degree of monopoly power? What happens to the degree of monopoly power? Monpoly power will according to the Lerner Index. Nhat price ceiling yields the largest level of output? Output will be maximized at a price ceiling of s] What is the firm's degree of monopoly power at this price? Monopoly power at this price according to the Lerner Index will be