The firm's profits areeconomic.O accounting.both; these are the same for monopolies.In the long run, economic profits for this monopoly will beO increasing.O positive.The gph ply wi co inal nd topdind dtwighe ko mzero.O negative. Question 1 of 18The graph illustrates a monopoly with constant marginal cost and zero fixed cost. Place the shapes on the graph to show theprofits and deadweight loss (DWL) for this firm.1817Profits15DWL14131211109876.4MC21-1MR-20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20QuantityPrice ($)O N O Ln 4

The green zone is the deadweight loss. Since MC is constant and there are no fixed costs, the…

The graph illustrates a monopoly with constant marginal cost and zero fixed cost. Place the shapes on the graph to show the profits and deadweight loss (DWL) for this firm. 18 17 I Profits 16 15 A DWL 14 13 12 11 10 8. 7 6. 4 3 MC 1 -1 \MR -2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity Price ($)

The graph illustrates a monopoly with constant marginal cost and zero fixed cost. Place the shapes on the graph to show the profits and deadweight loss (DWL) for this firm. 18 17 I Profits 16 15 A DWL 14 13 12 11 10 8. 7 6. 4 3 MC 1 -1 \MR -2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity Price ($)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 30CTQ: If a monopoly firm is earning profits, how much would you expect these profits to be diminished by...

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