Define marginal revenue.

Provide a comment to the graph below explaining the relationship between price

and marginal revenue in monopoly and add to the graph the marginal revenue

function. Assume that the total cost function of the monopolist is TC= 4$+2$*Q. Add to the graph the marginal cost and the average variable cost function. Identify, both graphically and algebraically:

1. The optimum quantity that the monopolist will have to produce to maximise profits;

2. The ATC and the profit per unit of output computed at the optimum quantity: 3. The total revenue, the total costs and the total

profits of the monopolist.