Exhibit 9-11
-If the monopolist in Exhibit 9-11 engages in perfect price discrimination, price would be
A) $120 for the 884th unit
B) $212 on all units
C) $120 on all units
D) $136 on all units
E) $104 on all units

Question

Exhibit 9-11 
-If the monopolist in Exhibit 9-11 engages in perfect price discrimination, price would be
A) $120 for the 884th unit 
B) $212 on all units 
C) $120 on all units 
D) $136 on all units 
E) $104 on all units

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer the maximum price they are willing to pay for each unit, which means the price for the 884th unit would be $120, as it reflects the consumer's willingness to pay for that specific unit.

Exhibit 9-11 -If the Monopolist in Exhibit 9-11 Engages in Perfect Price