![](https://cdn.statically.io/img/s3-us-west-2.amazonaws.com/moblab-manuals/images/price_discrimination/price_discriminating_main.png)
- Each round, the monopolist uses the “+” button to sequentially add pallets to the shipment of pharmaceuticals.
- Clicking the pill button at the top of the stack of pallets will subtract one pallet from the shipment.
- When the monopolist adds or subtracts a pallet from the shipment, price and marginal revenue will adjust on screen.
- To see a graphical depiction of the monopolist problem, click the “Show Graph” button to see the demand, marginal revenue, and marginal cost curves.
- To finalize the shipment press “Done”
Suppose the monopolist has a cost of $2 per unit. The monopolist sets quantity to be 7 units in the Blue Market and 2 units in the Orange Market. The demand curve for the Blue Market is P=20 - 2Q. The demand curve for the Orange Market is P=5 - Q. Because the monopolist is able to separate markets that means there are two market prices:
P= 20 - 2(7) = $6 in the Blue Market
P= 5 - (2) = $3 in the Orange Market
So the monopolist profit is:
Profit = 7x($6 - $2) + 2x($3 - $2) = $30
![tiled icons](https://cdn.statically.io/img/s3-us-west-2.amazonaws.com/moblab-manuals/aj/img/tile_angled_right_dark.png)
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