3. Use the diagram to show that a price discriminating monopolist earns more profit than one...

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3. Use the diagram to show that a price discriminating monopolist earns more profit than one charging a single price. Show further that he enjoys a greater profit the more he can discriminate (that is, the more different prices he can charge). P 90 80 70 60 50 ME 40 30 20 MR 10 4. At the current price of $63, firms in this (perfectly competitive) market are each producing 8.4 million widgets each year. (The quantities on the horizontal axis are measured in millions.) What will be the price and the typical firm's level of output in the long run? 90 80 70 60 50 40 30 20 10 123456789 Q Isoprofit curves 123456789 Q P AC 3. Use the diagram to show that a price discriminating monopolist earns more profit than one charging a single price. Show further that he enjoys a greater profit the more he can discriminate (that is, the more different prices he can charge). P 90 80 70 60 50 ME 40 30 20 MR 10 4. At the current price of $63, firms in this (perfectly competitive) market are each producing 8.4 million widgets each year. (The quantities on the horizontal axis are measured in millions.) What will be the price and the typical firm's level of output in the long run? 90 80 70 60 50 40 30 20 10 123456789 Q Isoprofit curves 123456789 Q P AC