Make a Graph

For this work, produce a marginal cost analysis graph and answer some questions.

Steps

1. Select a product. It can be real or made up. Give your good or service a name and a price in U.S. dollars. Identify the market type for your product (pure/perfect competition, monopolistic competition, oligopoly, monopoly).
2. Draw a marginal analysis graph. Title it the market for the product you chose. Label the axes, the marginal cost curve (MC), the marginal revenue curve (MR), and the profit-maximizing quantity (Qpm). You do not need to use real numbers.
3. Answer the reflection questions in complete sentences:
   • What is your product and its price? What type of market does your product exist in?
   • Why is the marginal cost curve the same basic shape, no matter the product?
   • At the profit-maximizing quantity, is the price of your product equal to, higher than, or lower than marginal cost? Explain.
   • Assume Qpm is 100 units. What is your total revenue?
   • Why would an already-successful business owner conduct a marginal cost analysis for their product?