Exhibit 9.16

-Refer to Exhibit 9.16,which shows the cost and revenue curves faced by a monopolist.If this monopolist practices perfect price discrimination,the maximum amount consumers are willing to pay for that unit is _____

Question

Exhibit 9.16
 
-Refer to Exhibit 9.16,which shows the cost and revenue curves faced by a monopolist.If this monopolist practices perfect price discrimination,the maximum amount consumers are willing to pay for that unit is _____

Quizplus · Accepted Answer

If the monopolist practices perfect price discrimination, it can charge each consumer the maximum amount they are willing to pay for each unit. This is represented by the demand curve. The maximum amount consumers are willing to pay for the last unit is c.

Exhibit 9.16 -Refer to Exhibit 9.16,which Shows the Cost and Revenue Curves