The problem asks to determine the profit-maximizing output level, the corresponding price, and the profit for a monopolist based on the provided graph showing Marginal Cost (MC), Average Cost (AC), Demand (D), and Marginal Revenue (MR) curves.

1. Problem Description

The problem asks to determine the profit-maximizing output level, the corresponding price, and the profit for a monopolist based on the provided graph showing Marginal Cost (MC), Average Cost (AC), Demand (D), and Marginal Revenue (MR) curves.

2. Solution Steps

To maximize profit, a monopolist produces at the quantity where Marginal Revenue (MR) equals Marginal Cost (MC). From the graph, the intersection of MR and MC occurs at a quantity of

1

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0.

Next, to find the price, we go up from the quantity of 100 to the Demand (D) curve. The price corresponding to the quantity of 100 on the Demand curve is $

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To calculate the profit, we use the formula:

$Profit = (Price - Average Cost) \times Quantity$

At a quantity of 100, the Average Cost (AC) is $

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5. $Profit = ($20 - $15) \times 100 = $5 \times 100 = $500$.

Therefore, the monopolist will produce 100 units, charge a price of $20, and the firm's profits are equal to$

5

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0.

3. Final Answer

100, $20,$500