7. In 1986 a patent was granted for a greenhouse helmet (https://www.wipo.int/patents/en/2018_patent_picks.html #5 in this article)....

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7. In 1986 a patent was granted for a greenhouse helmet (https://www.wipo.int/patents/en/2018_patent_picks.html #5 in this article). The patent gives the inventor the sole right to produce these greenhouse helmets. The inverse demand for the greenhouse helmets is P = 100 - Q. The company's costs are TC=1000+Q and MC=2Q. a. The ATC of producing greenhouse helmets is: b. At what level of output will the company maximize their profits? What price will they charge per unit? What are their profits? c. Graph the demand curve (D), the marginal revenue curve (MR), the marginal cost curve (MC) and the average total cost curve (ATC). e. d. Show the profit maximizing output and price. Shade in the firm's profits in blue. How much consumer surplus exists in the market? Highlight and label the consumer surplus in the anti-eating face masks market. 200 190 180 170 160 150 150 140 140 130 130 120 8110 110 100 100 es 90 90 80 70 70 09 60 50 40 30 f. How much producer surplus exists? Highlight and label the producer surplus. 10 15 20 25 30 g. Show the inefficiency (DWL) on the graph above. What is the efficient level of output in the market? 35 p 50 55 60 59 70 75 85 h. After greenhouse helmets have been selling for several months, they notice that the demand curve shifted to P=200-4Q. Plot the new demand curve on the graph and label it D2. Plot the new marginal revenue curve on the same graph and label it MR2. 200 190 180 170 160 150 140 130 120 E110 $/Helmet 100 90 80 70 60 212223242525252525 Q of Greenhouse Helmets i. At what level of output will the greenhouse helmet company maximize profits? What price will they charge? What are their profits? j. A supply curve represents a unique relationship between P and Q. Is there a unique relationship between P and Q for a monopolist? Explain. k. What might have happened to cause the demand to shift like it did in part h, relative to the start of the question? Hypothesize on what demand shifters might have occurred - this is review from early in the course. 7. In 1986 a patent was granted for a greenhouse helmet (https://www.wipo.int/patents/en/2018_patent_picks.html #5 in this article). The patent gives the inventor the sole right to produce these greenhouse helmets. The inverse demand for the greenhouse helmets is P = 100 - Q. The company's costs are TC=1000+Q and MC=2Q. a. The ATC of producing greenhouse helmets is: b. At what level of output will the company maximize their profits? What price will they charge per unit? What are their profits? c. Graph the demand curve (D), the marginal revenue curve (MR), the marginal cost curve (MC) and the average total cost curve (ATC). e. d. Show the profit maximizing output and price. Shade in the firm's profits in blue. How much consumer surplus exists in the market? Highlight and label the consumer surplus in the anti-eating face masks market. 200 190 180 170 160 150 150 140 140 130 130 120 8110 110 100 100 es 90 90 80 70 70 09 60 50 40 30 f. How much producer surplus exists? Highlight and label the producer surplus. 10 15 20 25 30 g. Show the inefficiency (DWL) on the graph above. What is the efficient level of output in the market? 35 p 50 55 60 59 70 75 85 h. After greenhouse helmets have been selling for several months, they notice that the demand curve shifted to P=200-4Q. Plot the new demand curve on the graph and label it D2. Plot the new marginal revenue curve on the same graph and label it MR2. 200 190 180 170 160 150 140 130 120 E110 $/Helmet 100 90 80 70 60 212223242525252525 Q of Greenhouse Helmets i. At what level of output will the greenhouse helmet company maximize profits? What price will they charge? What are their profits? j. A supply curve represents a unique relationship between P and Q. Is there a unique relationship between P and Q for a monopolist? Explain. k. What might have happened to cause the demand to shift like it did in part h, relative to the start of the question? Hypothesize on what demand shifters might have occurred - this is review from early in the course.