Exhibit 9-11
-If the monopolist in Exhibit 9-11 engages in perfect price discrimination, total revenue would be
A) $95,300
B) $104,000
C) $106,080
D) $187,408
E) equal to the area under the demand curve bounded by the horizontal axis and a quantity of 884 units

Question

Exhibit 9-11 
-If the monopolist in Exhibit 9-11 engages in perfect price discrimination, total revenue would be
A) $95,300 
B) $104,000 
C) $106,080 
D) $187,408 
E) equal to the area under the demand curve bounded by the horizontal axis and a quantity of 884 units

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer the maximum price they are willing to pay, capturing all consumer surplus as revenue. This makes total revenue equal to the area under the demand curve up to the quantity sold.

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