Given below is the graph depicting cost and revenue curves of a monopolist firm.

Out of the following output levels as shown in graph, maximum profit will be earned at?

q₀

The profits are earned where total revenue is greater than total cost. At q₂ and q₃, total revenue is equal to total cost. So no profit no loss at these output levels. Between q₁ and q₀, more profit is earned at q0. So, out of output levels shown in graph, maximum profit is earned t q₀.Also, profit will be maximum where distance between total revenue and total cost curves is maximum. This seems to happen at q₀ level of output.