If a monopoly firm is currently produce 100 units of outputs where price equals $7, average total cost equals $8 and marginal cost is increasing. UseONEdiagram to answer the following parts.

a) Draw a graph showing a monopolist in this short-run equilibrium. No explanation is required. Label the critical values on the diagram if the data are provided.

b) Calculate the amount of profit or loss. Indicate the area of it in your diagram.