The following diagram illustrates the demand curve facing a monopoly in an industry with no economies or diseconomies of scale and no fixed costs. In the short and long run, $MC=$ATC.

$1.)$ Using the point drawing tool, indicate the monopoly output and monopoly price $($Monopoly$)$ in the figure to the right. Attach the appropriate provided label.

$2.)$ Using the rectangle drawing tool, shade in monopoly profits $($Profit$).$ Attach the appropriate provided label.

$3.)$ Using the triangle drawing tool, shade in the "excess burden" or "welfare costs" of the monopoly $($Excess burden$).$ Attach the appropriate provided label.

Note: Carefully follow the itstructions above and only draw the required objects.

The monopoly creates excess burden because

A$.$ it produces an inefficiently large amount of output.

B$.$ it charges a price that is too low.

C$.$ it produces where marginal cost is positive.

D$.$ it produces where price is above marginal cost.

E$.$ it produces where price equals marginal revenue.