With perfect price discrimination, the marginal revenue curve
A)is below the demand curve.
B)is above the demand curve.
C)is equal to the demand curve.
D)is horizontal.

Name: With perfect price discrimination, the marginal revenue curve A)is below the demand curve. B)is above the demand curve. C)is equal to the demand curve. D)is horizontal.
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Question

Quizplus · Accepted Answer

With perfect price discrimination, the firm charges each consumer their maximum willingness to pay, making the marginal revenue curve equal to the demand curve.

With Perfect Price Discrimination, the Marginal Revenue Curve