Imagine that you arrive at an economics experiment with six other people and are told that you will simulate a market.Graph AYou will be the only seller. The other five people will be assigned a dollar value that they will receive if they buy the goodfor any amount of money (so if a person's value is $5, he will buy the good for any price less than $5 and will be happy).You are also given the marginal cost and demand curves to the right and told that it represents the values that the"buyers" are assigned.Using the graph, the marginal revenue from increasing output from 1 unit to 2 units isO A. 9.О В. 2O C. 4.D. 3.MCOn Graph A:Draw the marginal revenue curve that you face as the monopolist, based on the demand curve given to the right.MRD1.) Using the multipoint curve drawing tool, depict the marginal revenue curve that you face as a monopolist. Label yourcurve 'MR.' (Only graph marginal revenues that are equal to or greater than zero.)QuantityCarefully follow the instructions above and only draw the required object.After plotting the final point of your multipoint curve, be sure to press the 'ESC' key to end your line.Given your marginal revenue curve, as a monopolist you would sellunits at a price ofОА. 3;B 2%.О в. 2;B $4.O C. 2; $2.O D. 3; $3.

Number of units Total Revenue = P*Q Marginal Revenue 1 4*1 = 4 0 2 3*2 = 6 2 3 2*3 = 6 0 4…

magine that you arrive at an economics experiment with six other people and are told that you will simulate a market. You will be the only seller. The other five people will be assigned a dollar value that they will receive if they buy the good or any amount of money (so if a person's value is $5, he will buy the good for any price less than $5 and will be happy). You are also given the marginal cost and demand curves to the right and told that it represents the values that the buyers" are assigned. Graph A 6- Q 5- Jsing the graph, the marginal revenue from increasing output from 1 unit to 2 units is OA. 9. оВ. 2. ос. 4. D. 3. MC On Graph A: 1- Draw the marginal revenue curve that you face as the monopolist, based on the demand curve given to the right. MR D 1.) Using the multipoint curve drawing tool, depict the marginal revenue curve that you face as a monopolist. Label your curve 'MR.' (Only graph marginal revenues that are equal to or greater than zero.) 0- Quantity Carefully follow the instructions above and only draw the required object. After plotting the final point of your multipoint curve, be sure press the 'ESC' key to end your line. Given your marginal revenue curve, as a monopolist you would sell units at a price of OA. 3; 2$. О в. 2;B $4. O C. 2; $2. O D. 3; $3.

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 8PA