The profit-maximizing monopolist will choose the price and quantity represented by point

Monopolist maximizes profit where MR = MC and point A gives the correspond price and quantity combination. For a monopolist, profit maximization occurs where MR = MC. In the figure: MR and MC intersect at point B, which determines the profit-maximizing output Q1 After determining output Q₁, the monopolist moves vertically upward to the Demand (D) curve to find the price consumers are willing to pay. This gives point A, corresponding to price P₄. Profit is given by: π=(P−ATC)×Q Here: Price (P) = P₄ (Point A) Average Total Cost (ATC) = P₂ at output Q₁ Quantity (Q) = Q₁