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 total revenue when 3 ties are sold?
A) $140
B) $420
C) $450
D) $620

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 total revenue when 3 ties are sold?
A) $140 
B) $420 
C) $450 
D) $620

Quizplus · Accepted Answer

With perfect price discrimination, the monopolist charges each individual customer their maximum willingness to pay. From the table, we can see that each of the three customers is willing to pay a different amount for the tie: $80, $120, and $250. Therefore, the monopolist can charge each customer their maximum willingness to pay, resulting in total revenue of $80 + $120 + $250 = $450. So, the answer is C.

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