Table 15-18
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination.

-Refer to Table 15-18.If the monopolist can engage in perfect price discrimination,what is the marginal revenue from selling the 5th tie?
A) $80
B) $100
C) $110
D) $120

Question

Table 15-18
Tommy's Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy's is able to engage in perfect price discrimination.
 
-Refer to Table 15-18.If the monopolist can engage in perfect price discrimination,what is the marginal revenue from selling the 5th tie?
A) $80 
B) $100 
C) $110 
D) $120

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer their maximum willingness to pay. The marginal revenue from selling the 5th tie is equal to the price the 5th consumer is willing to pay, which is $120.

Table 15-18 Tommy's Tie Company, a Monopolist, Has the Following Cost and Cost