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Matthew Mignone
on Oct 08, 2024

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If a pure monopolist can price discriminate by separating buyers into two or more groups:

A) the marginal revenue curve and the total revenue curve will now coincide.
B) the marginal revenue curve will now shift to a position above the demand curve.
C) the firm will face multiple marginal revenue curves.
D) marginal revenue will become less at each level of output than it would be without price discrimination.

Price Discriminate

The strategy of selling the same product to different customers at different prices based on what the seller believes each customer is willing to pay.

Marginal Revenue Curve

A graphical representation that shows how marginal revenue varies as output level changes, typically downward sloping for firms in competitive markets.

Demand Curve

A chart that displays how the cost of an item correlates with the amount of that item buyers are prepared to buy at different price levels.

  • Gain insight into the notion of varying prices for different consumers and its utilization by monopolies.
  • Identify the different outcomes of price discrimination for monopolists versus consumers.
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Kyler HarrisOct 09, 2024
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