Question

Discussion Topic: Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm's profits? Does price discrimination lead to a more efficient or less efficient outcome? Why or why not? Submission Format: Each student should submit a main post and reply to a minimum two peers with thoughtful responses. Proofread the content of your posts before making them public; proper grammar and sentence structure are expected. Remember that the discussion tool is public - all enrolled students will be able to view posts and responses See Rubric for more grading criteria. Rubrics Discussion Rubric

Answer 1

Vichar Monopoly Market with one Market with only one sell seller but many be Price A a Infl Morgund hat info Demand tlululo Marquroyl Revenue mih Demand omas manentny condition is - MC=MR th corresponding bourt hon i gm on shooon above Regular frice -Up, corresponding sty-Pon consumed surfing in this case - Area(A+B) Producer Surphy in this can = Arrea Cetate+F+G Now when Monoboust reduce the price tops, New quantity demanded y is shown in groph) Now Consumer Surplus has increased - Area (A+B+Ct Produce surples hay decreased - Ana Cetf+49 - Net gain en consumper Suppley - Area (c to th) Net loss in producer Jespley = Area (CtDe-I) Net tog en overall suppley And H* I) by reducing frice, consumer susplay enereast Susplus docmasy, with brodficer overall but oneftiorency resultly due surpley equiral to log I the area (H+ 2). meer