(Figure: PPD) Refer to the figure. Which of the followingstatements best explains why a firm that perfectly pricediscriminates would sell additional units beyond c units ofoutput?
A) If the firm can perfectly price discriminate it can charge a price equal to the consumers' willingness to pay, which for all
Units beyond c is higher than the firm's marginal cost for those
Units.
B) The firm will continue to increase profits as long as consumers' willingness to pay is greater than zero.
C) A firm will not sell beyond c units of output.The marginal cost is greater than consumers' willingness to pay for these
Units.
D) A firm will not sell beyond c units of output.The marginal cost is greater than the firm's marginal revenue for these
Units.
Correct Answer:
Verified
Q41: What is perfect price discrimination?
A)This occurs when
Q42: (Figure: PPD Monopolist) Refer to the figure.
Q45: Which of the following is NOT an
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