Assignment: Draw a graph for a monopoly with
demand, marginal revenue, and marginal cost curves. Identify the
profit-maximizing output level (Qm) and price (Pm). (Photos of your
work are not accepted) Suppose the monopolist sells Qm units of
output at the regular price and then puts the product on sale at a
lower price, Ps. Show the new price and quantity. What happens to
the firm’s profits? Does price discrimination lead to a more
efficient or less efficient outcome? Why...