Suppose that McMaster Carr company has a monopoly in selling steel outlet boxes with knockouts. Use the following information on the demand of steel boxes to answer the following questions.

a. If the firm can sell the products at a constant cost of $15, how many boxes does he sell, what price does it charge, and how much profit does it make?

b. If the company is able to engage in perfect price discrimination, what is the total revenue for three boxes?
What is the marginal revenue from the third box?

c. If the company is able to engage in perfect price discrimination, how many boxes will be sold, and what is the profit?

d. In the following graphs, the firm acts on the market 1 without price discrimination and on the market 2 with perfect price discrimination. Draw the marginal cost curve, color the areas that show consumer surplus, producer surplus and deadweight loss. What happens?

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Price $26 25 24 23 22 21 20 Quantity Demanded 1 2 3 4 5 6 7