Question: Using the following graph, answer questions a through d. a. What are the profit-maximizing price and quantity levels for the monopolist? b. Calculate profit. c.

Using the following graph, answer questions a through d.

a. What are the profit-maximizing price and quantity levels for the monopolist?

b. Calculate profit.

c. Suppose the government imposes a price ceiling of $40. Now what is the optimal price and quantity combination?

d. Calculate the new level of profit.

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