|Question||a. What is the monopolist’s profit-maximizing output?
b. At the profit-maximizing output rate, what are average total cost and average revenue?
c. At the profit-maximizing output rate, what are the monopolist’s total cost and total revenue?
d. What is the maximum profit?
e. Suppose that the marginal cost and average total cost curves in the diagram also illustrate the horizontal summation of the firms in a perfectly competitive industry in the long run. What would the equilibrium price and output be if the market were perfectly competitive? Explain the economic cost to society of allowing a monopoly to exist.