Exhibit 23-7

-Refer to Exhibit 23-7. If D represents the demand curve facing a perfectly price-discriminating monopolist, the price it charges for the last unit sold exceeds the marginal cost of the last unit by
A)$30.
B)$15.
C)$0.
D)an amount that cannot be determined without the average cost curve.

Question

Exhibit 23-7
 
-Refer to Exhibit 23-7. If D represents the demand curve facing a perfectly price-discriminating monopolist, the price it charges for the last unit sold exceeds the marginal cost of the last unit by
A)$30. 
B)$15. 
C)$0. 
D)an amount that cannot be determined without the average cost curve.

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer the maximum they are willing to pay, resulting in the price of the last unit sold being equal to the marginal cost of that unit. Therefore, the difference is $0.

Exhibit 23-7 -Refer to Exhibit 23-7. If D Represents the Demand Curve