(Solved): Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of L ...

Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph glves the marginal cost (MC), marginal revenue (MR), avenge total cost (ATC), and demand (D) curves that Lagatt Green foces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purpie rectangle (diamond symbols) to shade in the area representing its foss. Suppose Lagatt Green charges \$2.00 per bottle. Your study partner Gabriel says that because Lagatt Green is a monopoly with market pawer, it should charge the higher price of $\$2.25$ per bottle in order to increase its profit. Camplete the following table to determine whether Gabriel is correct. Given the earlibe information, Gabriel correct in his assertion that Lagatt Green should charge $\$2.25$ per bottle. Suppese that a technological infovition decreases Lagatt Green's costs so that it now faces the marginal cost (MC) and average total cout (AFC) given on the following graph, specfically, the technological innovation causes a decrease in average faxed costs, thereby lowering the ArC curve and moving the MC curve: Suppose that a technological innovation decreases Lagatt Green's costs so that it now faces the marginal cost (MC) and average total cost (ATC) Given on the following groph. Specifically, the technological innovation causes a decrease in average fired costs, thereby lowering the ATC curve and moving the Mc eurve. Place the block point (plus symbal) an the following graph to indicate the pront-maximising price and quantity for Lagatr Green. If Lagatt Green is making a profic, use the green rectangle (Uiangle symbols) to shade is the area representing its pront, On the ocher hand, if Lagatt Green is suffering at loss, wse the purple rectangle (diamond symbols) to shade in the area reavesenting the loss. .