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ceymorebucks24 ceymorebucks24
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Suppose a monopolist faces the demand curve and cost curves shown below.

Short description: A graph plots quantity against dollars. Long description: The horizontal axis representing quantity ranges from Q subscript 0 to Q subscript 5. The vertical axis representing dollars ranges from P subscript 0 to P subscript 4. The graph plots two lines and two curves. The curve, MC passes through the points, f, d, and c. The curve, ATC passes through the points, b, d, and e. The line, demand passes through the points, a, c, and g. The line, MR passes through f. The points are as follows: f (Q subscript 0, P subscript 0); b (Q subscript 0, P subscript 2); d (Q subscript 1, P subscript 1); e (Q subscript 2, P subscript 2); a (Q subscript 0, P subscript 4); c (Q subscript 2, P subscript 3); g (Q subscript 5, P subscript 0).

FIGURE 10-6

Refer to Figure 10-6. If the monopolist is practicing perfect price discrimination and is maximizing its profits, the consumer surplus is represented by the area



▸ P5P2e.

▸ P5P3c.

▸ P5P4a.

▸ P5P0c.

▸ There is no consumer surplus in this case.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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michaelfidanzamichaelfidanza
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