Draw the graph. If the monopoly is a doing perfect price discrimination, then: the monopoly produces a quantity Q = ______ where ________________ (which curves intersect?)the monopoly charges a price of ________ (trick question!!!!) the consumer surplus is CS = ______. the producer surplus is PS = _________(identify the area on the graph and calculate it).this monopoly ________ (is / is not) efficient because ______________________. P$1,000$950$850$400MC$300D103090120QMR

When a firm practices perfect price discrimination, it maximises its surplus and produces an…

Answered: Draw the graph. If the monopoly is a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Draw the graph. If the monopoly is a doing perfect price discrimination, then:

the monopoly produces a quantity Q = ______ where ________________ (which curves intersect?)
the monopoly charges a price of ________ (trick question!!!!)
the consumer surplus is CS = ______.
the producer surplus is PS = _________(identify the area on the graph and calculate it).
this monopoly ________ (is / is not) efficient because ______________________.

P
$1,000
$950
$850
$400
MC
$300
D
10
30
90
120
Q
MR

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