Table 14-18
Tommy's Tie Company,a monopolist,has the following cost and revenue information.Assume that Tommy's is able to engage in perfect price discrimination.

-Refer to Table 14-18.If the monopolist can engage in perfect price discrimination,what is the total revenue when 7 ties are sold?

Question

Table 14-18
Tommy's Tie Company,a monopolist,has the following cost and revenue information.Assume that Tommy's is able to engage in perfect price discrimination.
 
-Refer to Table 14-18.If the monopolist can engage in perfect price discrimination,what is the total revenue when 7 ties are sold?

Quizplus · Accepted Answer

Under perfect price discrimination, the monopolist charges each buyer the maximum price they are willing to pay. In this case, for each tie sold, the price will be $130, resulting in a total revenue of $910 when 7 ties are sold ($130 x 7 = $910). This is the highest possible revenue the monopolist can earn from selling 7 ties.

Table 14-18 Tommy's Tie Company,a Monopolist,has the Following Cost and Revenue Information.Assume