(Figure: Monopoly Pricing and Output Decisions) Based on the graph, which statement is TRUE about this monopolist? Price and Cost ($) 40 35 30 25 20 15 10 5 12 1 1 14 16 Output MR 1 18 O It is operating at a loss but will continue to produce. O It is operating at a loss and will shut down. It is operating at a profit. O It is operating at a normal profit. 20 22 ATC 24 26

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