The accompanying figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the questions.
-If the firm can price-discriminate perfectly, calculate producer surplus.

Question

The accompanying figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the  questions. 
-If the firm can price-discriminate perfectly, calculate producer surplus.

Quizplus · Accepted Answer

Perfect price discrimination allows the firm to capture all consumer surplus as producer surplus, which is the area under the demand curve and above the supply curve up to the quantity sold.

The Accompanying Figure Depicts a Generalized Downward-Sloping Market Demand (D)