Exhibit 9.7

-Refer to Exhibit 9.7,which shows the cost and revenue curves faced by a profit-maximizing monopolist.If the monopolist engages in perfect price discrimination,the price of the monopolist's good will be _____
A)$120 for the 884th unit.
B)$212 for the 884th unit.
C)$120 for all units.
D)$136 for all units.
E)$104 for all units.

Question

Exhibit 9.7
 
-Refer to Exhibit 9.7,which shows the cost and revenue curves faced by a profit-maximizing monopolist.If the monopolist engages in perfect price discrimination,the price of the monopolist's good will be _____
A)$120 for the 884th unit. 
B)$212 for the 884th unit. 
C)$120 for all units. 
D)$136 for all units. 
E)$104 for all units.

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer the maximum price they are willing to pay for each unit. Therefore, the price for the 884th unit will be the price corresponding to that unit's demand, which is $120.

Exhibit 9.7 -Refer to Exhibit 9.7,which Shows the Cost and Revenue Curves