Question: The graph below shows the demand faced by Universal Maintenance Co., a monopolist, which in fixed costs and therefore has a marginal cost equal to


The graph below shows the demand faced by Universal Maintenance Co., a monopolist, which in fixed costs and therefore has a marginal cost equal to zero. Note: If necessary round your answers to two decimal places. a) Suppose that a new firm, which also has zero marginal costs, enters this industry and assumes Universal Maintenance Co. will continue to produce its current output. Plot the existing firm's marg revenue line, new firm's marginal revenue line, and new firm's demand line. 36- 32- MR 28- Cost ($) 20- Demand 16-MR Demand, 6 12 18 24 30 36 42 48 54 60 66 72 78 Units of Output
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