"n Grades: View Alexia v My Home Courses MindTap - Cengage Learning X x ng.cengage.com/static/nb/ui/evo/index.html?elSBN CENGAGE I MINDTAP Homework (Ch 14) Dashboard X Q how so screenshot on macboc Q Update Search this course A-Z Catalog and Study Tools Rental Options College Success Tips Career Success Tips RECOMMENDED FOR YOU Active Listening Help Give Feedback Suppose Clomper's is a monopolist that manufactures and sells Stompers, an extremely trendy shoe brand with no close substitutes. The following graph shows the market demand and marginal revenue (MR) curves Clomper's faces, as well as its marginal cost (MC), which is constant at $20 per pair of Stompers. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Clomper's marginal cost is constant, means that its marginal cost curve is also equal to the average total cost (ATC) curve. First, suppose that Clomper's cannot price discriminate. That is, it must charge each consumer the same price for Stompers regardless of the consumer's willingness and ability to pay. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the black points (plus symbol) to shade the deadweight loss in this market without price discrimination. (Note: If you decide that consumer surplus, profit, or deadweight loss equals zero, indicate this by leaving that element in its original position on the palette.) Monopoly Outcome Consumer Surplus profit Deadweight Loss Suppose now that Clomper's is able to perfectly price discriminatethat is, it knows each consumer's willingness to pay for a pair of Stompers and is E o o 100 90 80 70 60 50 40 30 20 10 o MC = ATC 40 Demand 80 120 160 200 240 280 320 QUANTITY (Pairs of Stompers) 360 400 able to charge each consumer precisely that amount.