Use the table below to answer the following questions.
Table 13.4.1

-Table 13.4.1 shows the demand schedule faced by a perfect price-discriminating monopoly. If 3 units are sold, total revenue is
A)$15.00.
B)$16.00.
C)$18.00.
D)$19.50.
E)$5.00.

Question

Use the table below to answer the following questions.
Table 13.4.1
 
-Table 13.4.1 shows the demand schedule faced by a perfect price-discriminating monopoly. If 3 units are sold, total revenue is
A)$15.00. 
B)$16.00. 
C)$18.00. 
D)$19.50. 
E)$5.00.

Quizplus · Accepted Answer

In a perfect price-discriminating monopoly, the firm charges each consumer the maximum price they are willing to pay. Therefore, total revenue for 3 units is the sum of the prices for each unit sold. If the prices for the first, second, and third units are $6, $6, and $6 respectively, then total revenue is $6 + $6 + $6 = $18.00.

Use the Table Below to Answer the Following Questions