(Solved): Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quant ...

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 purple rectangle (diamond symbols) to shade in the area representing its loss. Suppose Lagatt Green charges \( \$ 2.75 \) per bottle. Your study partner Taio says that because Lagatt Green is a monopoly with market power, it should charge the higher price of \( \$ 3.00 \) per bottle in order to increase its profit. Complete the following table to determine whether Taio is correct. Given the earlier information, Taio correct in his assertion that Lagatt Green should charge \( \$ 3.00 \) per bottle. Suppose that a technological innoi_ zreases Lagatt Green's costs so that it now faces the marginal cost (MC) and average total cost (ATC) giver on the following graph. Specifically nological innovation causes a decrease in average fixed costs, thereby lowering the ATC curve and moving