For a monopoly able to practice perfect price discrimination, the market
A)supply curve is horizontal.
B)supply curve is the same as the marginal revenue curve.
C)demand curve is the same as the marginal cost curve.
D)demand curve is the same as the marginal revenue curve.
E)demand curve is horizontal.

Question

Quizplus · Accepted Answer

With perfect price discrimination, a monopoly can charge each customer their maximum willingness to pay, which means that the price charged for each unit sold is equal to the marginal revenue from that unit. Hence, the demand curve in this case is the same as the marginal revenue curve.

For a Monopoly Able to Practice Perfect Price Discrimination, the Market