SETTINGS

Cost Structure

Quantity

$40$

$120$

Quantity

PROFIT CALCULATIONS

Instructions: Make sure the interactive is set to "Natural Monopoly" on the upper right side of the Graph section. When "Natural Monopoly" is selected, it will have a dark blue background.

With the Cost Structure $($in the settings section$)$ set to $"$a$"$

a$.$ What is the profit maximizing quantity? $|$ units

b$.$ What is the maximum profit that can be earned? $\backslash$$

With the Cost Structure $($in the settings section$)$ set to $"$e$"$

c$.$ What is the profit maximizing quantity? units

d$.$ What is the maximum profit that can be earned? $\backslash$$

Let the Cost Structure remain at $"$e$"$

e$.$ If the firm decides to produce $80$ units $($where the average total cost equals demand $\backslash (-$P$=$A T C $\backslash ))$ the Revenue is $\backslash (\backslash$$ $\backslash ),$ the Costs are $\backslash$$ $,$ and profits are $\backslash$$