Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, it should charge prices of
A)P₁ to children and P₂ to adults.
B)P₁ to adults and P₂ to children.
C)P₁ to both children and adults.
D)P₂ to both children and adults.

Question

Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, it should charge prices of
A)P₁ to children and P₂ to adults. 
B)P₁ to adults and P₂ to children. 
C)P₁ to both children and adults. 
D)P₂ to both children and adults.

Quizplus · Accepted Answer

The Answer of  Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, it should charge prices of
A)P₁ to children and P₂ to adults. 
B)P₁ to adults and P₂ to children. 
C)P₁ to both children and adults. 
D)P₂ to both children and adults.

Assume the Figure Applies to a Pure Monopolist and That