If a monopolist can perfectly price discriminate,then
A)price equals average cost for each unit sold.
B)price equals marginal cost for each unit sold.
C)price equals marginal cost for the last unit sold.
D)the firm can ignore the marginal cost curve.
E)price is greater than marginal revenue for each unit sold.

Question

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer their maximum willingness to pay, so price equals marginal cost for the last unit sold, where the demand curve intersects the marginal cost curve.

If a Monopolist Can Perfectly Price Discriminate,then