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The graph shows the revenue curves and cost curves for a monopoly. A graph plots demand and MR curve with MC and ATC curve on
The graph shows the revenue curves and cost curves for a monopoly. A graph plots demand and MR curve with MC and ATC curve on Quantity along the horizontal axis and Price along the vertical axis. The demand curve and the MR curve start at a common point on price and have negative slopes. Point A is marked on the demand curve at D on quantity, G on price. The MC curve corresponds to E on price and with a slight dip rises up, intersecting the MR curve at point K, which is D on quantity, F on price. The ATC curve corresponds to I on price and with a slight dip rises up, intersecting the demand curve at point L, which is D on quantity, I on price. Point C is marked on the ATC curve at D on quantity, E on price. The ATC and the MC curves intersect at J on quantity, E on price. If the monopolist perfectly price discriminates: producer surplus will be zero. consumer surplus will be zero. profit will be zero. there will be a deadweight loss equal to area ACL
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