'l'eSt 1t 1. Draw a correctly labeled monopoly graph for a rm earning an economic prot. Show the prot-maximizing level of output and price and shade the area of economic prot for the monopolist. 2. Why is the MR below the D curve in a monopoly? 3. How is the prot-maximizing level of output determined in the monopoly? 4. How is the price determined in the monopoly? 5. How is the economic prot for the monopolist determined? Worksheet 61.2: Monopoly Prot Analyze the monopoly graph given below. Determine the following: 1. The monopolist's optimal point of output 2. The perfectly competitive rm's price 3. The monopolist's price 4. The perfectly competitive rm's prot 5. The monopolist's prot 6. Is there allocative efciency for the monopolistic rm? Explain. 7. Is there allocative efciency for the perfectly competitive firm? Explain