If a pure monopolist can price discriminate by separating buyers into two or more groups,
A) the marginal revenue curve and the total revenue curve will now coincide.
B) the marginal revenue curve will now shift to a position above the demand curve.
C) the firm will face multiple marginal revenue curves.
D) marginal revenue will become less at each level of output than it would be without price discrimination.

Question

Quizplus · Accepted Answer

When a pure monopolist engages in price discrimination, they are essentially creating different submarkets, each with their own demand and marginal revenue curve. This means that the firm will face multiple marginal revenue curves depending on the submarket they are selling to. Therefore, choice C is the correct answer.

If a Pure Monopolist Can Price Discriminate by Separating Buyers