What is the monopolist’s profit maximizing level of output? ______________
b. What is the profit maximizing price? _______
c. What is the firm’s TR at the profit maximizing level of output? __________________
d. What is the marginal cost of producing the profit maximizing level of output? _________
e. Is the monopolist making a profit or a loss? __________Identify your answer on the graph by shading in the relevant area and labeling it as a profit or a loss.
f. Compared to a perfectly competitive industry, the monopolist charges a ________ price and produces a __________ quantity of goods.
Please use the graph to answer question 1
2. Graph the TR and TC curves of a monopolist and show its break-even levels of output. (Make sure to label the axes and every line you draw)