Question: 9. 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.

9. Using the following graph, answer questions (a)

through (d).

88 MC 25 MA 34 ATC

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.

88 MC 25 MA 34 ATC

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