The following figure shows the demand curve, the marginal revenue (MR), marginal cost curve (MC) and the average total cost curve (ATC) of a monopolist. Price/Cost (S) ATC 00 8 7 6 5 st \MC 3 2 Demand MR 1 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 Quantity (units) Refer to the figure above. a) What is the profit-maximizing quantity for the monopolist? b) What is the profit-maximizing price for the monopolist? c) When the monopolist is free to set the price what is his profit/loss
