in the following figure if the monopoly firm faces atc ATC

in the following figure if the monopoly firm faces atc.. .

ATC 2 MC ATC 0. MR Quantity (number of DVD players) lowecent years, U.S. car manufacturers have charged r rars in western states in an effort to ces tor ca

Solution

If monopoly faces ATC2 then monopoly will get zero profit because at point E, price=ATC

But if monopoly faces ATC1 then monopoly will produce at point G, where price is H and ATC is C.

Thus monopoly profit=CFEG.