Why profit maximizng monopolist does practice discrimination

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If the profit maximizing monopolist does not practice discrimination, what uniform price will he charge and how much profit will he earn? The following figure shows the demand and marginal revenue for a monopolist, who has many buyers with different valuations of the good. Each buyer demands only one unit of the good, and only two are willing to pay $6.5 for it. The valuation decreases for each additional buyer as shown in the figure. The marginal cost of production is $3 per unit.

Reference no: EM13201485

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