For a monopoly that practises perfect price discrimination,the market
A)supply curve is horizontal.
B)supply curve is the same as the marginal revenue curve.
C)demand curve is the same as the marginal cost curve.
D)demand curve is the same as the marginal revenue curve.
E)demand curve is horizontal.

Question

Quizplus · Accepted Answer

In perfect price discrimination, the firm charges each individual consumer the maximum amount they are willing to pay for the product. Therefore, the demand curve for each consumer is the same as the marginal revenue curve for the firm. In other words, the firm can sell any unit of the product at the highest price each individual consumer is willing to pay. So, the demand curve is the same as the marginal revenue curve.

For a Monopoly That Practises Perfect Price Discrimination,the Market