Table 15-3
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination.

-Refer to Table 15-3. If the monopolist can engage in perfect price discrimination, what is the total revenue when 3 ties are sold?

Question

Table 15-3
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination.
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-Refer to Table 15-3. If the monopolist can engage in perfect price discrimination, what is the total revenue when 3 ties are sold?

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer the maximum price they are willing to pay. Assuming the prices for the first three ties are $150, $150, and $150, the total revenue for 3 ties would be $450.

Table 15-3 Tommy's Tie Company, a Monopolist, Has the Following Cost and Cost