(Solved): Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrin ...

Karim's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Karim initlally produced four trucks, but then decided to increase production to five trucks. The following graph gives the demand curve faced by Karim's HookNLadder. As the graph shows, in order. to sell the additional fire truck, Karim must lower the price from $\$105,000$ to $\$90,000$ per truck. Notice that Karim gains revenue from the sale of the additional engine, but at the same time, he loses revenve from the initial four engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial four engines by selling at $\$90,000$ rather than $\$105,000$. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $\$90,000$. Karimin Increase production from 4 to 5 fire engines because the dominates in this scenario. True or False: If alternatively Karim's HookNLadder were a competitive firm and $\$105,000$ were the market price for an engine, decreasing its price from $\$105,000$ to $\$90,000$ would result in the same change in the production quantity and, thus, total revenue. True False