Which of the following is true for a perfect price- discriminating monopoly?
A) P MC for each unit sold.
B) P = ATC for each unit sold.
C) P = MR for each unit sold.
D) P = MC for each unit sold.

Question

Which of the following is true for a perfect price- discriminating monopoly?
A) P > MC for each unit sold.
B) P = ATC for each unit sold.
C) P = MR for each unit sold.
D) P = MC for each unit sold.

Quizplus · Accepted Answer

In a perfect price-discriminating monopoly, the price charged for each unit equals the consumer's maximum willingness to pay, which is also equal to the marginal revenue (MR) for each unit sold. This allows the monopolist to capture all consumer surplus as profit.

Which of the Following Is True for a Perfect Price-