Ly Lab 11 (Question 1) ~ Lyryx Learning Inc - Google Chrome X laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 Question 1 [20 points] The graph below shows the demand faced by XYZ Co., a monopolist, which incurs only fixed costs and therefore has a marginal cost equal to zero. Note: If necessary round your answers to two decimal places Help a) Suppose that a new firm, which also has zero marginal costs, enters this industry and assumes that XYZ Co. will continue to produce its current output. Plot the existing firm's marginal revenue line, new firm's marginal revenue line, and new firm's demand line. Marginal Revenue Marginal Revenue New Firm's Demand New Firm's Marginal Revenue +Demand Cost ($) pts have been used up. 48 56 64' 72' Reset Units of Output b) Before the new firm disrupted XYZ Co.'s monopoly what was the price XYZ Co. charged, and what quantity of output did it produce? Price = $ 0 Output = 0 c) What output will the new firm choose to produce, and what will be the new market price, given both firms' output? New Market Price = $ 0 New Firm's Output = 0 Examination Information 10:07 AM 2020-08-02