If P is greater than ATC, then economic profits are positive. If P is equal to ATC, then economic profits are zero. If P is less than ATC, then economic profits are negative. P. Portray a graph of the monopolist. The monopoly's marginal cost curve looks exactly like a competitive industry's short-run supply curve, however, monopolies do not have supply curves.
Monopolies restrict output to raise prices.
Less production and higher prices means that less consumer surplus will be associated with the monopoly. A monopolist's positive economic profits may persist in the long run. Price Discrimination Price Discrimination occurs when a firm charges various consumers different prices for the same goods produced at the same costs. The firm must be able to sort its consumers by their elasticities of demand. The firm must be able to prevent resale.