Economic analysis of MonoTV

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Suppose you are an economic adviser to the president, and the president asks to make an economic analysis of MonoTV, Inc., a firm that sells a patented device used in high-definition television sets. You have the following information about MonoTV, Inc. a. Given the data in the table, graphically show all the elements necessary to represent the monopolist’s profit maximization. Note: You do not need to draw the average total cost curve. b. What level of output does MonoTV, Inc., produce? What price does it sell this output at? c. Does MonoTV, Inc., produce at the socially optimal level? Why or why not? Show any inefficiency on your graph.

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