Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.

A) have total revenues equal to
B) earn a profit of
C) have total costs equal to
D) lose

Question

Kathlyn Giocado · Accepted Answer

Final Answer : B, Explanation :  A perfectly price-discriminating monopolist captures all consumer surplus as profit. The total revenue equals the area under the demand curve up to the quantity sold, and since the monopolist can perfectly price discriminate, the profit is maximized, potentially reaching $16,000.

Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.

A) have total revenues equal to
B) earn a profit of
C) have total costs equal to
D) lose

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Learning Objectives

Related questions

Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.A) have total revenues equal toB) earn a profit ofC) have total costs equal toD) lose

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.

A) have total revenues equal to
B) earn a profit of
C) have total costs equal to
D) lose