Consider the following AR and MR curves for a single- price monopolist.
FIGURE 10- 2
-If a monopolist is practicing perfect price discrimination,then the following equation is true:

Question

Consider the following AR and MR curves for a single- price monopolist.
  FIGURE 10- 2
-If a monopolist is practicing perfect price discrimination,then the following equation is true:

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each customer the maximum price they are willing to pay, which means the demand curve for each customer becomes the MR curve for that customer. As a result, the MR curve becomes the same as the demand curve for all units, and therefore MR = P for all units.

Consider the Following AR and MR Curves for a Single-