ALL Price Discriminating Monopolist FRQ's
2014 AP Microeconomics Exam
The Price Discriminating Monopolist charges the highest price for every unit of output sold
Therefore the area of profit is everything above the ATC.
(i) Monopolist's profit
(i) Consumer Surplus is Zero
(i) Quantity produced by the Price Discriminator
The Price Discriminating Monopolist charges the highest price for each unit of good sold
therefore its MR Curve becomes the Demand Curve
The monopolist produces where MR = MC
This is now at Q3
(ii) Total Revenue = P * Q
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