(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
This final part asks what happens if the single-price monopolist can now perfectly price discriminate.
(Description)
The graph from the slide 1 is shown.
The following text is written above the graph:
If the monopolist can price-discriminate perfectly, what quantity will the perfectly price-discrimination monopolist produce?
(Speaker)
In this case, the demand curve is also the marginal revenue curve for the firm. The can sell the good at whatever price the consumer is willing to pay. This results in the firm selling more output then the single monopolist. Being able to perfectly price discriminate allows the monopoly to be able to lower the price for the next customer without having to lower the price for the customers willing to pay more. For this problem, being able to perfectly price discriminate allows the monopoly to sell S units.
(Description)
Point, S, is briefly highlighted. It is labeled as If monopolist can perfectly price discriminate, they produce up to the point where, D equals MC, or quantity, S.
(Speaker)
Because for the last unit it can just make a consumer pay a price of E, equal to its marginal cost, and that just covers it's marginal cost of producing that last unit. For any further units, it could not make any consumer pay more that its marginal cost and it therefore stopped selling units at quantity S.