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Ave

rag

e to

tal

cost

$20

15

10

0 50 200

Quantity

100

$750

500

250

Total-revenue curve

To

tal

reve

nu

e $200

150

100

50

0

0 2 4 6 8 10 12 14 16 18 Q

Elastic Inelastic

Demand and marginal-revenue curve

Pri

ce

Pri

ce,

cost

s, a

nd

rev

enu

e

Quantity

Q 10 9 8 7 6 5 4 3 2 1 0

50

75

100

125

150

175

$200

Ave

rag

e t

ota

l co

sts

Quantity

ATCx

ATC1

ATCx’

ATC2

Q2 Q1

0

Pri

ce a

nd

co

sts

Pri

ce a

nd

co

sts

A1

P1

Q1Q1 Q2

A2

Single-price monopolist Perfectly discriminating monopolist

Pri

ce a

nd

co

sts

(do

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s)

Quantity

Qm Qf Qr

Pr

Pf

Pm