Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm).

 









































The graph shows the demand, marginal revenue (MR), and marginal cost (MC) curves for a monopoly. The profit-maximizing output level (Qm) is 32 units, and the corresponding price (Pm) is 68. At this output level, the monopoly maximizes its profit by setting the price where the marginal revenue equals the marginal cost