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    Just a quick question on the price discrimination diagram. When drawing the graph for the total market do you make the assumption that MC and AC are constant? If this is the case then it does make showing the abnormal profit for different markets an easier job but just thought I'd see what you guys do.

    Oh and also do you guys draw the AR (thus the MR) curve for the total market as an inverted kinked demand curve kind of shape?

    Thanks
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    (Original post by n_251)
    Just a quick question on the price discrimination diagram. When drawing the graph for the total market do you make the assumption that MC and AC are constant? If this is the case then it does make showing the abnormal profit for different markets an easier job but just thought I'd see what you guys do.

    Oh and also do you guys draw the AR (thus the MR) curve for the total market as an inverted kinked demand curve kind of shape?

    Thanks
    Yes, MC and AC are constant.

    I don't draw the total market. I basically draw the inelastic market and the elastic market side-to-side. And then I put a constant for the Price of the total market - it makes life easier.
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    Thanks a lot! I checked this with my teacher too and he said it was alright!
 
 
 
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