Monopoly Profit on the Graph | Channels for Pearson
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(a) Draw a correctly labeled graph for a single-price monopoly and show 2 pointsthe profit-maximizing quantity, labeled Q1.(b) Assume the monopoly now engages in perfect price discrimination. On yourgraph in part (a), show the profit-maximizing quantity for the price-discriminating monopoly, labeled Q2.(c) Based on your answer in part (b), what will happen to the consumersurplus? Explain.(d) Is the output produced by the perfectly price-discriminatingmonopolist allocatively efficient? Explain.2
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