5. A monopolist is faced with the following cost and revenue curves: (a) What is the maximum-profit output? 80 MC (b) What is the maximum-profit price? 70 60 (c) What is the total revenue at this price and output? 50 AC (d) What is the total cost at this price and 40 output? 30 (e) What is the level of profit at this price 20 AR and output? 10 (f) If the monopolist were ordered to 0 produce 300 units, what would be the 100 200 300 400 500 600 market price? 10 20 MR (g) How much profit would now be made? Quantity (h) If the monopolist were faced with the same demand, but average costs were constant at $60 per unit, what output would maximize profit? (i) What would be the price now? How much profit would now be made?. (k) Assume now that the monopolist decides not to maximize profits, but instead sets a price of $40. How much will now be sold? (1) What is the marginal revenue at this output? (m) What does the answer to (1) indicate about total revenue at a price of $40? (n) What is the price elasticity of demand at a price of $40? (You do not need to do a calculation to work this out: think about the relationship between MR and TR.)