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The following table indicates the prices various buyers are willing to pay for a MINI Cooper car: Buyer Maximum Price Buyer A Buyer B Buyer

The following table indicates the prices various buyers are willing to pay for a MINI Cooper car: Buyer

Maximum Price

Buyer A Buyer B Buyer C

$50,000 40,000 30,000

Buyer D Buyer E Buyer F

Maximum Price

$20,000 10,000 0

The cost of producing the cars includes $40,000 of fixed costs and a constant marginal cost of $10,000.

(a) Graph below the demand, marginal revenue, and marginal cost curves.

(b) What is the profit-maximizing rate of output and price for a monopolist?

(c) How much profit does the monopolist make?

(d) If the monopolist can price discriminate, how many cars will he sell? (e) How much profit will he make?

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