You are the monopoly supplier of laptops to a market consisting of four segments: A, B, C and D

The following diagram shows the monopolist's demand curve. The horizontal axis shows the market share, which ranges up to 100 percent and the vertical axis shows the price. Since every individual in each component of the segmented market will pay the same RP, the demand curve is a horizontal line for that component.

When the product price is $1,500, the firm can sell, at that price, to a maximum of 20 percent of the market. Any price drop below that is irrelevant unless the price decreases to at least $1,100, which is the reference price for the next market segment.

At the price of $1,100, the firm can sell to a maximum of 50 percent of the market.

With the next two price drops to $950 and $800, respectively, all potential consumers in the market would be interested in buying the product. Determining exactly what quantity the firm would be willing to produce and at what price would require introducing marginal revenue and marginal cost curves to the diagram.

It should be noted that the market equilibrium might fall inside one of the horizontal line segments, depending on where the marginal revenue and marginal cost curves intersect.

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