5 . Using the following graph: 1,800 - Marginal cost 1,600 - 1,400 - Total profit 1,200 - Average cost 1,000 Marginal Cost/ Marginal Revenue 800 600 400 Demand 200 Marginal revenue -200 4 5 6 Quantity a - How does the monopolist determine the production level that will maximize profits? (Meaning what determines the quantity that the monopolist will produce?) b - At this quantity how does the monopolist determine the price to charge in the market? c - In this situation does the monopolist earn economic profits? 6. In question five is the monopolist price higher than if the market were competitive? Is price higher than MC