The monopolist's profit-maximizing quantity of output is determined by the intersection of which following two curves:

a. Marginal cost and demand,

b. Marginal cost and marginal revenue,

c. Average total cost and marginal revenue,

d. Average variable cost and average revenue.

• The monopolist's profit-maximizing quantity of output is determined by the intersection of which following two curves b. Marginal cost and marginal revenue.

The monopolist can set the prices according to the intersection of Marginal Revenue (MR) and Marginal Cost (MC) curves. The price and output quantity at which profit-maximization occurs can be decided by the monopolist through the marginal cost and marginal revenue for manufacturing and selling an additional unit. If the marginal revenue is higher than the marginal cost, then a monopoly firm must manufacture extra units to increase profit. On the other hand, when the marginal cost is higher than marginal revenue, the monopoly should reduce production to increase profit. Therefore, to maximize profits, the monopoly will adjust output to a point where the marginal revenue equals the marginal cost.