Figure 14-16
-Refer to Figure 14-16.If there are no fixed costs of production,monopoly profit with perfect price discrimination equals

Question

Figure 14-16 
-Refer to Figure 14-16.If there are no fixed costs of production,monopoly profit with perfect price discrimination equals

Quizplus · Accepted Answer

With perfect price discrimination, a monopoly captures all consumer surplus as profit. The total area under the demand curve up to the quantity produced represents the monopoly profit. If there are no fixed costs, this area equals the total revenue, which is $6,250.

Figure 14-16 -Refer to Figure 14-16.If There Are No Fixed Costs of Fixed