Question: A hypothetical monopoly firm is characterized by the following diagram. Answer Parts a, b, c using the alphabetical labels shown in the diagram, and provide a brief explanation for your answer in each part.

1. Assuming that the above firm is a profit maximizer, identify the points in the above graph which
   designate the firm’s optimal units of output and price ?
2. Determine the firm’s profit or loss by identifying the area of the related rectangle in the above
   graph, based on the labeled points. (Hint: The area of a rectangle is equal to its width times its length).
   
3. If the above monopolist were to behave like a perfectly competitive firm, what quantit y will it
   produce and why ?

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