The following figure shows the costs and revenue curves of a firm in a monopoly market.

-Refer to the figure above.If this monopolist engages in the "first degree price discrimination," he will charge ________ per unit of its output.

Question

The following figure shows the costs and revenue curves of a firm in a monopoly market.
 
-Refer to the figure above.If this monopolist engages in the "first degree price discrimination," he will charge ________ per unit of its output.

Quizplus · Accepted Answer

First-degree price discrimination, also known as perfect price discrimination, occurs when a monopolist charges each consumer the maximum price they are willing to pay for each unit, resulting in different prices for different units based on the consumer's willingness to pay.

The Following Figure Shows the Costs and Revenue Curves of a Firm