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# Calculating optimal output level

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Use the attached graph to answer the following questions

a) what is the monopolist's profit-maximizing output?
b)At the profit-maximizing output rate, what are the monopolist's 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?

##### Solution Summary

Solution describes the steps to calculate optimal output level, ATC, AR, total cost, total revenue and associated profit.

##### Solution Preview

a) What is the monopolist's profit-maximizing output?

A monopolist sets its output level such that MR=MC to maximize profits. Refer to the graph and check for the point where MR and MC curves intersect each other. We find that MR and MC curves intersect each other ...

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###### Education
• BEng (Hons) , Birla Institute of Technology and Science, India
• MSc (Hons) , Birla Institute of Technology and Science, India
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