The diagram below shows a monopolist's MC and ATC curves as well as the industry demand and MR curves.

1. What is the profit-maximizing price and level of output for the monopolist?
2. What area in the figure shows the level of profits for the monopolist? Are profits positive or negative?
3. What area shows the deadweight loss to society resulting from the monopolist's output decision?

Now suppose the industry' is made up of many small, price-taking firms (with the same technology). What are the equilibrium price and level of output in this case?