If a monopolist can perfectly price discriminate, then
A) price equals average cost for each unit sold.
B) price equals marginal cost for each unit sold.
C) price equals marginal cost for the last unit sold.
D) the firm can ignore the marginal cost curve.

Question

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer their maximum willingness to pay, so the price equals marginal cost for the last unit sold, where the monopolist stops producing.

If a Monopolist Can Perfectly Price Discriminate, Then