10.3 Price Discrimination
Suppose a monopolist faces the demand curve and cost curves shown below.
FIGURE 10-5
-Refer to Figure 10-5.If the monopolist is practicing perfect price discrimination and is maximizing its profits,the consumer surplus is represented by the area
A) P5P3c.
B) P5P4a.
C) P5P0c.
D) P5P2e.
E) There is no consumer surplus in this case.
Correct Answer:
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