Exhibit 9-20
-In Exhibit 9-20, a price discriminating monopolist will charge what price?

Question

Exhibit 9-20 
-In Exhibit 9-20, a price discriminating monopolist will charge what price?

Quizplus · Accepted Answer

In segment A, the monopolist will charge the highest possible price that consumers in that segment are willing to pay, which is represented by the intersection of the segment's demand curve and the monopolist's marginal revenue curve, labeled as point B11. In segment B, the monopolist can only charge one price and will choose the price that maximizes total profit, which is represented by point P2. Therefore, the monopolist will charge P₁ in segment A and P2 in segment B.

Exhibit 9-20 -In Exhibit 9-20, a Price Discriminating Monopolist Will Charge What