Suppose now that Clomper's is able to perfectly price discriminate-that is, it knows each consumer's willingness to pay for a pair of Stompers and isable to charge each consumer precisely that amount.On the following graph, use the black point (plus symbol) to indicate the profit-maximizing quantity sold and the lowest price at which the firm sells itsboots. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and theblack points (plus symbol) to shade the deadweight loss in this market with perfect price discrimination. (Note: If you decide that consumer surplus,profit, or deadweight loss equals zero, indicate this by leaving that element in its original position on the palette.)(?)PRICE (Dollars per pair of Stompers)10090807060504030201000 200MC = ATCDemandStatement400 600 800 1000 1200 1400 1600 1800 2000QUANTITY (Pairs of Stompers)Monopoly OutcomeOProfitAConsumer SurplusTotal surplus is not maximized.Clomper's produces a quantity less than the efficient quantity of Stompers.There is no deadweight loss associated with the profit-maximizing output.CDeadweight LossConsider the welfare effects when the industry operates under a monopoly and cannot price discriminate versus when it can price discriminate.Complete the following table by indicating under which market conditions each of the statements is true. (Note: If the statement isn't true for eithersingle-price monopolies or perfect price discrimination, leave the entire row unchecked.) Check all that apply.Single-price Monopoly Perfect Price DiscriminationL[□n[]U Suppose Clomper's is a monopolist that manufactures and sells Stompers, an extremely trendy shoe brand with no close substitutes. The followinggraph shows the market demand and marginal revenue (MR) curves Clomper's faces, as well as its marginal cost (MC), which is constant at $30 perpair of Stompers. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Clomper's marginal cost is constant,means that its marginal cost curve is also equal to the average total cost (ATC) curve.First, suppose that Clomper's cannot price discriminate. That is, it must charge each consumer the same price for Stompers regardless of theconsumer's willingness and ability to pay.On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity. Next, use the purple points (diamondsymbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the black points (plus symbol) to shade thedeadweight loss in this market without price discrimination. (Note: If you decide that consumer surplus, profit, or deadweight loss equals zero,indicate this by leaving that element in its original position on the palette.)PRICE (Dollars per pair of Stompers)100908070605030201000MRMC = ATCDemand200 400 600 800 1000 1200 1400 1600 1800 2000QUANTITY (Pairs of Stompers)Monopoly OutcomeAConsumer SurplusProfitDeadweight Loss

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The profit-maximizing quantity is fixed by a monopoly firm without price discrimination at the…