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Someone please help me I beg you please

I’m doing an a level Econ question and it’s telling me to draw third degree price discrimination in an inelastic and elastic market and to show supernormal profit.

Im unsure of where the Ac curve goes or whether the Ac curve and the Mc are both a straight line. I’m going insane someone please

Reply 1

Taz.

The MC curve looks like a Nike tick and that should be the same for both graphs. For supernormal profit the AC curve should be below the point of the MC at profit max quantity crosses the demand curve (AR). Quantity for profit max is where AC meets MR. The AC curve looks like a U with the lowest point of the U crossing MC.