The document instructs how to graphically illustrate a monopoly with constant marginal costs of $2 and no fixed costs. It provides steps to: 1) draw the MC curve, 2) draw the AVC curve, 3) draw the AC curve, 4) indicate the profit-maximizing price and quantity point e, 5) shade the profit region, and 6) shade the deadweight loss triangle created by the monopoly.

1. A monopoly has a constant marginal cost of production of $2 per unit and no fixed costs. In the
figure to the right, let D be demand and MR be marginal revenue. 1.) Using the line drawing
tool, graph the monopoly's marginal cost curve. Label this curve 'MC.' 2.) Using the line drawing
tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' 3.) Using the line
drawing tool, graph the monopoly's average cost curve. Label this curve 'AC.' 4.) Using the point
drawing tool, indicate the monopoly's profit-maximizing price and quantity. Label this point 'e.'
5.) Using the rectangle drawing tool, shade in the monopoly's profit. Label this 'profit.' 6.) Using
the triangle drawing tool, shade deadweight loss created by the monopoly. Label this 'DWL.'
Carefully follow the instructions above, and only draw the required objects.