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The Following Figure Shows the Demand and Marginal Revenue for a Monopolist

Question 54

Multiple Choice

The following figure shows the demand and marginal revenue for a monopolist, who has many buyers with different valuations of the good.Each buyer demands only one unit of the good, and only two are willing to pay $6.5 for it.The valuation decreases for each additional buyer as shown in the figure.The marginal cost of production is $3 per unit.

The following figure shows the demand and marginal revenue for a monopolist, who has many buyers with different valuations of the good.Each buyer demands only one unit of the good, and only two are willing to pay $6.5 for it.The valuation decreases for each additional buyer as shown in the figure.The marginal cost of production is $3 per unit.     -Refer to Figure .How much profit will the monopolist earn if he practices price discrimination? A) $10 B) $25 C) $15 D) $22
-Refer to Figure .How much profit will the monopolist earn if he practices price discrimination?


A) $10
B) $25
C) $15
D) $22

Correct Answer:

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