The firm’s SMC and MR curves intersect at an output of 100, and the point on its demand curve at this output is at Rs.10

The firm’s SMC and MR curves intersect at an output of 100, and the point on its MR curve at this output is at Rs.10

The firm’s SMC and AR curves intersect at an output of 100, and the point on its MR curve at this output is at Rs.10

The firm’s SMC and AR curves intersect at an output of 100, and the point on its AR curve at this output is at Rs.10

If AR at this output is below SAC

If AR at this output is below AVC

If MR at this output is below SAC

If MR at this output is below AVC

This firm might respond to a fall in demand by reducing its output and reducing its price

This firm might respond to a fall in demand by reducing its output and increasing its price.

This firm would respond to a fall in the price of a fixed input by increasing its output and reducing its price

This firm would respond to a fall in the price of a variable input by increasing its output and reducing its price

The best strategy for the monopolist is to set the highest prices for the types of customer with the least elastic demand

Some customers will face a higher price than they would if the firm did not adopt price discrimination

By having a relatively low price for some groups of customers, the monopolist is sure to make less profit than it would without price discrimination

The monopolist might be able to make more profit by instead discriminating between different individual customers

The firm may make a profit indefinitely

The firm’s SMC curve and its LMC curve will both intersect its MR curve at its chosen output.

The firm’s SAC curve will intersect its LAC curve at its chosen output

If the firm suddenly started to worry about the prospect of new entrants, it might decide to reduce its price