Question

Homework: L9. Monopoly Score: 0 of 1 pt 7 of 11 (0 complete) HW Score: 0%, 0 of 1 Concept: Profit Maximization Question Help @ Suppose the figure to the right represents the market for diamond necklaces, where the company that supplies necklaces is a monopoly because it is the only firm with access to diamond mines. What is the firm's profit-maximizing price and quantity? What are profits? 1.) Use the point drawing tool to indicate the profit-maximizing price and quantity for the monopoly, Label this point 'Profit-maximizing MC 260.00- 240.00- 220.00 200.00 180.00 160.00 140.007 120.00 100.00 80.00 60.00 40.00 20.00 0.004 2.) Use the rectangle drawing tool to shade in economic profits. Label this shaded area 'Profil Carefully follow the instructions above, and only draw the required objects. STO MR + T610 12 14 16 18 20 22 24 25 Quantily diamond necklaces 2 Graph

Answer 1

Answee 260 200 MC 190 LO Price and cost ATC * 80 Pm 40 "MR 20 O 2 16 20 24 Om Quantity 1) Thus, Post and Qm are the profit maximizing price and quantity respectively and are 34 110 and 24. 2) The shaded portion represents the profit for the monoply Profil - (190-110 ) x (16-0) 2) 80 X 16