In a monopolistically competitive market, how does a firm employing price discrimination maximize its economic profit in relation to marginal cost?

In a monopolistically competitive market, a firm can maximize its economic profit by using price discrimination, which means charging different prices to different customers based on their willingness to pay. The firm first identifies various groups of consumers who value the product differently and then sets prices accordingly. By doing this, the firm can capture more consumer surplus, turning it into additional revenue. For instance, a movie theater might charge higher prices for evening showings when demand is greater and lower prices for matinee showings when demand is less. This strategy allows the firm to produce at a level where marginal cost equals marginal revenue for each group, leading to a higher overall profit compared to charging a single price.