Question: In the diagram below, and using a short paragraph, indicate how 1 st degree price discrimination would work. In your diagram, clearly indicate the consumers'

In the diagram below, and using a short paragraph, indicate how 1^st degree price discrimination would work. In your diagram, clearly indicate the consumers' surplus, deadweight loss, and profit contribution once 1^st degree price discrimination has taken place. In a paragraph, explain why it would make sense to sell some units below their average cost.

P MC D Q MR

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