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Question: byob is a monopolist in beer production and distribution in...

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BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. 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 400 T 3.50 Monopoly Outcome 3.00 250 TC 2.00 Loss 1.50 1.00 0.50 MR 00.5 0 15 20 25 30 35 40 QUANTITY (Thousands of cans of beer)Suppose that BYOB charges $2.00 per can. Your friend Raphael says that since BYOB is a monopoly with market power, it should charge a higher price of $2.25 per can because this will increase BYOBs profit. Complete the following table to determine whether Raphael is correct. Profit Dollars) Price (Dollars per can) 2.00 2.25 Quantity Demanded Total Rene Total Cost (Dollars) (Cans) (Dollars) Given the earlier information, Raphael ▼ correct in his assertion that BYOB should charge $2.25 per can. Suppose that a technological innovation decreases BYOBs costs so that it now faces the marginal cost (MC) and average total cost (ATC) given on the ollowing graph. Specifically, the technological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and moving the MC curve. 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 purple4.00 T 3.50 Monopoly Outcome 300 2.50 1.50 Loss ATC 1.00 MR 05 1.0 1.5 2.0 2.5 30 35 4。 QUANTITY (Thousands of cans of beer)

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