Figure 8-15
-Refer to Figure 8-15.With perfect price discrimination,the firm will produce and sell

Question

Figure 8-15 
-Refer to Figure 8-15.With perfect price discrimination,the firm will produce and sell

Quizplus · Accepted Answer

With perfect price discrimination, the firm will charge each consumer their maximum willingness to pay, resulting in a different price for each unit sold. Therefore, the total quantity produced and sold will be equal to the sum of the quantities demanded at each price, as shown by the demand curve. In this case, the highest price charged is $8, resulting in a quantity of 13 units sold. Therefore, the answer is C, Q₃ units.

Figure 8-15 -Refer to Figure 8-15.With Perfect Price Discrimination,the Firm Will Produce