Draw the graph for a monopoly earning a positive economic profit. Suppose the government
institutes a per unit tax on the good produced by the monopoly (consider the impact it will have
on the cost curves). On the graph, show how this will affect the monopolys profit maximizing
level of output and the price charged by the monopoly. D raw and Label Price Axis, Quantity
Axis, Demand Curve, Marginal Revenue Curve, Marginal Cost Curve, Average Total Cost
Curve, New Marginal Cost Curve, New ATC Curve, Qm, MR=MC, MR=MC1 Qm1, Pm, Pm1,
ATC point, ATC1 point, Deadweight Loss, Total Revenue, Total Cost, Profit.
Draw the graph for a monopoly earning a positive economic profit. Su.pdf
1. Draw the graph for a monopoly earning a positive economic profit. Suppose the government
institutes a per unit tax on the good produced by the monopoly (consider the impact it will have
on the cost curves). On the graph, show how this will affect the monopolys profit maximizing
level of output and the price charged by the monopoly. D raw and Label Price Axis, Quantity
Axis, Demand Curve, Marginal Revenue Curve, Marginal Cost Curve, Average Total Cost
Curve, New Marginal Cost Curve, New ATC Curve, Qm, MR=MC, MR=MC1 Qm1, Pm, Pm1,
ATC point, ATC1 point, Deadweight Loss, Total Revenue, Total Cost, Profit
