4. The figure below presents the demand curve, marginal revenue, marginal costs, and average total costs facing a monopolist producer.Plot the profit-maximizing price and quantity on the graph. Under monopoly pricing, are profits positive, negative, or zero?Draw the deadweight loss under monopoly pricing.If government mandates P = ATC, are profits positive, negative, or zero? Compared to monopoly pricing, is deadweight loss smaller, larger, or the same size? Price ($)5550454035302520151050 1123MRI14 5 6QuantityATCI778MCDJ8 9 10 11

In a market where there is a monopoly, a single producer sells all the available goods. As a result, the manufacturer has complete control over the market and is thought of as setting prices. The profit-maximizing condition in a monopoly market is determined by the equality of mammal revenue (MR) and mammal cost (MC). The profit-maximizing quantity is determined by MR and MC being equal, while the equilibrium price is established by the demand curve.1) The demand curve, marginal revenue curve, marginal cost curve, and average total cost curve for a monopolist are depicted in the accompanying graph The marginal revenue and mammal cost curves connect in the graph above, resulting in a profit-maximizing quantity of 4 units. The demand curve was used to determine the equilibrium price, which is $30 and corresponds to the equilibrium quantity.Therefore, the goal of maximizing is price is $30, and the quantity is 4 units. 2) In a market with monopoly pricing, the price that yields the greatest profit is $30, which corresponds to the sale of 4 units. The ATC is $15 for 4 units. The price is higher than the ATC, thus the company is profitable.The positive gains are depicted in the following diagram: The darkened region rectangle in the above diagram represents a monopolist's profits. Therefore, there is a positive profit.3) In the diagram below, the deadweight loss under monopoly pricing is indicated: The blue triangle AEB in the preceding diagram denotes the deadweight loss.4) The profit-maximizing quantity will be determined at the point where the ATC intersects the demand curve if the government mandates that price must be equal to ATC. Because the price and ATC are identical, the monopolist will experience a loss. The deadweight is less when P = ATC than it is when monopoly pricing is used. The deadweight loss when P = ATC is depicted in the following diagram: The tiny green triangle in the following diagram signifies the deadweight loss when P=ATC.