Figure 15-7
The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist.

-Refer to Figure 15-7.What is monopoly profit with perfect price discrimination

Question

Figure 15-7
The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist.
 
-Refer to Figure 15-7.What is monopoly profit with perfect price discrimination

Quizplus · Accepted Answer

With perfect price discrimination, a monopoly can capture the entire area under the demand curve up to the quantity produced, which maximizes profit. If the total area under the demand curve is $4000, then the monopoly profit is $4000.

Figure 15-7 the Figure Depicts the Demand, Marginal-Revenue, and Marginal-Cost Curves of Curves