4) Complete the table below for the figures from a business that has a monopoly on widgets. Fixed costs are $25, and MC is $20. Once completed plot the MR, demand (D), and MC curves on the graph and in your own words explain the relationship between the curves and price. Properly label the graph for full marks. (5+4+2) marks) HINT: pp 250-254/PPT CH10 Monopoly Company Row Q P TR *MR *MC *ATP *TC *E. Profits A 60 B 1 55 C 2 50 3 D 3 45 3 E 4 40 F 5 35 G 6 30 70 (All below must be correct for 2 marks) To maximize profits the business should produce (Q) at a price of (P) $ 50 Total revenues will be $ while total 40 costs will be $ which will result in 30 a/an O economic profit O economic loss O break-even of $ Any thoughts? 1 2 3 4 5 6 7 10 -20 Quantity5) Below is a graph indicating demand for widgets in a perfectly competitive environment. (1+2 marks) Hint: pp. 218/PPT CH09 i) The graph represents the O market or O individual firm's demand curve for widgets? (check or circle one) ii) Explain (IN YOUR OWN WORDS) why the demand curve D looks like it does. Q 6) Match the concept with the best matching explanation. All in each category must be correct to get the mark allocated. (4 marks) Hint: CHO8 Characteristic Perfect Monopolistic Oligopoly Monopoly Competition Competition Elastic O Elastic O Elastic O Elastic Elasticity O Inelastic O Inelastic O Inelastic O Inelastic O High O High O High O High Barriers to Medium O Medium O Medium Medium Entry None O None O None O None 0 One O One 0 One O One Number of O Few O Few O Few O Few Businesses O Many O Many O Many O Many O Great many O Great many O Great many O Great many None close None close None close O None close Substitutes Different Different O Different O Different O Many O Many O Many Many O Maker O Maker Pricing Power Maker O Maker O Taker O Taker O Taker O Taker