Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits? Does price discrimination lead to a more efficient or less efficient outcome? Why or why no

Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show…