If a firm could perfectly price discriminate
A)The marginal revenue curve would be the same as the demand curve
B)The marginal revenue curve would lie below the demand curve
C)The marginal revenue curve would lie above the demand curve
D)There would be no marginal revenue function

Question

Quizplus · Accepted Answer

When a firm can perfectly price discriminate, it can charge every consumer their exact willingness to pay, so there is no consumer surplus. This means that the marginal revenue curve would be the same as the demand curve because the firm can sell each unit at the highest price the consumer is willing to pay.

If a Firm Could Perfectly Price Discriminate