If a monopolist has downward sloping average costs, he will not produce if he cannot price discriminate.

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A monopolist with downward sloping average costs will still produce and sell his product, even if he cannot price discriminate. However, he may not be able to maximize profits without price discrimination. If he cannot price discriminate, he may still charge a single price that is lower than the price he could charge if he were able to price discriminate.

If a Monopolist Has Downward Sloping Average Costs, He Will