Which of the following is true at the level of output which maximizes profits for a perfectly price-discriminating monopolist? A)P MC. B)P

Question

Which of the following is true at the level of output which maximizes profits for a perfectly price-discriminating monopolist?
A)P > MC.
B)P < ATC.
C)P < MC.
D)a and b
E)none of the above

Quizplus · Accepted Answer

For a perfectly price-discriminating monopolist, the price charged for each unit of output equals the consumer's willingness to pay, which is also equal to the marginal revenue (MR) for that unit. Profit maximization occurs where MR = MC (marginal cost). Therefore, none of the given options accurately describe the condition for profit maximization in the case of a perfectly price-discriminating monopolist.

Which of the Following Is True at the Level of Output