On the following graph, use the green points (trlangle symbol) to plot annual to

Question

On the following graph, use the green points (trlangle symbol) to plot annual total revenue at prices of $7, s6, $5, $4, $3, $2, and $1 per basket of kumouats. Be sure to use all of the points provided. Une segments will automatically connect the points Then, con sider the quantity of kumquats at which Kevin Cuttners marginal revenue exactly equals zero. Place a grey point (star symtol) on the total revenue curve to Indicate this quantity. Drop lines will automatically extend to both axes. TOTAL REVENUE (Thousends of dollars per year 80 Total Revenue MR-0 56 32 12162924283234 Ir Kevin sels B,000 baskets at the highest price consumers are willing to pay according to the demand curve, his average revenue will be per basket. If a moropoly produces, then it will: O Always operate on the elastic portion of ts demand curve O Always produce the maximum amount of output possible O Always produce where marginal revenue equals zero O Always operate on the inelastic portion of its demand curve

Explanation / Answer

If Kevin sells 8000 baskets at the highest price consumers are willing to pay according to the demand curve, his average revenue will be $7 per basket.

If a monopoly produces, it will produce the maximum amount of output possible.

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