-If the monopoly illustrated in the figure above could engage in perfect price discrimination, then when it maximizes its profit the total revenue collected by the firm would be
A) $110.
B) $120.
C) $210.
D) $310.

Question

-If the monopoly illustrated in the figure above could engage in perfect price discrimination, then when it maximizes its profit the total revenue collected by the firm would be
A) $110. 
B) $120. 
C) $210. 
D) $310.

Quizplus · Accepted Answer

The total revenue collected by the firm would be $210 when it maximizes its profit under perfect price discrimination. This is because the firm would be able to charge each consumer the maximum price they are willing to pay for the good, and thus would capture all of the consumer surplus.

-If the Monopoly Illustrated in the Figure Above Could Engage