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(Figure: PPD) Refer to the Figure

Question 44

Multiple Choice

  (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. (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.

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