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Monopoly

1

Price Discrimination

7m

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2

Perfect Price Discrimination

6m

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3

Price Discrimination

4m

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4

Problem

If the firm’s marginal cost is constant at $3.00, output for a perfect price discriminating monopolist is:

A

2 units

B

3 units

C

4 units

D

5 units

5

Problem

The marginal revenue for the perfectly price discriminating monopolist from the sale of the third unit is:

A

$6

B

$5

C

$4

D

$3

6

Problem

The total revenue for the perfectly price discriminating monopolist from selling five units of output is:

A

$5

B

$15

C

$18

D

$25

7

Problem

If the firm’s marginal cost is constant at $3.00, the perfect price discriminating firm will charge each customer:

A

$3

B

$5

C

$8

D

A different price