Which of the following is true at the level of output which maximizes profits for a perfectly price-discriminating monopolist?

Question

Quizplus · Accepted Answer

A perfectly price-discriminating monopolist charges each customer the maximum price they are willing to pay, so the marginal revenue (MR) of each customer is equal to the price (P). In order to maximize profits, the monopolist produces at the level of output where MR = MC. Since in perfect price discrimination, P = MR, this means the monopolist will produce at the level of output where P = MC. Therefore, the correct answer is D.

Which of the Following Is True at the Level of Output