From the revenue and cost curves of a monopolist above, firm will earn normal profits at which of following outputs? i. q2 ii. q1 iii. q0 iv. q3

ii, iii i, iv i, ii i, iii

i, iv

Normal profits mean no profit and no loss. This happens when total revenue is equal to total cost. This happens at two output levels in the above diagram. They are – q2 and q3.