Home » Larry, Moe, and Jo run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Jo wants the saloon to bring in…

# Larry, Moe, and Jo run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Jo wants the saloon to bring in…

Larry, Moe, and Jo run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Jo wants the saloon to bring in as much revenue as possible. Moe wamts to make the largest possible profits. Using a single diagram of the saloon’s demand curve and cost curves, show the price and quantity combinations favored by each of the three partners. Expain. Draw a graph for the standard monopoly model. For simplicity, draw a linear demand “curve” that touches the y-axis, and the subsequent linear marginal revenue line. Draw a linear Marginal cost curve. Moe – easy – standard monopoly solution. output where MC=MR Jo – a bit harder — output where MR=0 (i.e., where MR crosses the x axis. At that Q, find the price from the demand curve. Larry – hardest – Select a quanty Q such that the triangle-ish area between 0 and Q under the supply curve is equal to the box area formed by the selected Q and the corresponding Price from the demand curve. (Note: if you have linear MR and demand curves and if you draw MC as a line coming out of the origion, At the point where MC=MR draw a HORIZONTAL line over to the demand curve. This horizontal line will be the price, where it hits the demand curve will be the desired Q, and the area of the Triange under MC formed by 0 and Q should equal the box formed by P and Q. Total revenue is P*Q and is represented by box in your graphI just realized my answer for Larry was way more complicated that it needed to be. Further, my answer only works if there are no fixed costs. The area under MC is total variable cost. Anyway, simply draw a total average cost curve. Where the curve crosses the demand curve gives the price and quantity that gives zero profit.the demand for a luxury good whose purchase would exhaust a significant portion of one’s income is?perfectly inelastic It should be relatively elastic,since propotion is involved,then ralativity should be included,and since we know that we can live without luxury items then this its damand should be elastic

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.