Graph 15-6 This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.If the monopolist engages in perfect price discrimination, then the prices it charges will be equal to:
A)a single price equal to b
B)a single price equal to d
C)a range of prices between b and d
D)a range of prices between a and d

Question

Graph 15-6  This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.If the monopolist engages in perfect price discrimination, then the prices it charges will be equal to:
A)a single price equal to b 
B)a single price equal to d 
C)a range of prices between b and d 
D)a range of prices between a and d

Quizplus · Accepted Answer

Perfect price discrimination means charging each consumer the maximum they are willing to pay, resulting in a range of prices along the demand curve from the highest price (a) to the price where marginal cost equals demand (d).

Graph 15-6 This Graph Depicts the Demand, Marginal-Revenue and Marginal-Cost