(Figure: PPD) Refer to the figure. Which of the followingstatements best explains why a firm that perfectly pricediscriminates would sell additional units beyond a units ofoutput?
A) A firm will not sell beyond a units of output.The firm will only sell exactly a, as it is the profit-maximizing rate of output
For this firm.
B) The marginal cost is less than consumers' willingness to pay for these units.
C) The marginal cost is greater than consumers' willingness to pay for these units.
D) A firm will not sell beyond a units of output, since the marginal cost is greater than the marginal revenue for these
Units.
Correct Answer:
Verified
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B)
A) P
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