In the case of a perfectly price-discriminating monopolist, the price of the last unit sold:
A) is greater than marginal cost.
B) is equal to marginal cost.
C) is less than marginal cost.
D) and marginal cost cannot be compared.

Question

Quizplus · Accepted Answer

A perfectly price-discriminating monopolist charges each customer the maximum they are willing to pay, which is equal to their individual demand curve. This means that the price charged for each additional unit will be equal to the consumer's willingness to pay for that unit, which is equal to the marginal cost of the unit. Therefore, the price of the last unit sold will be equal to marginal cost.

In the Case of a Perfectly Price-Discriminating Monopolist, the Price