If a monopoly can engage in perfect price discrimination,then its marginal revenue is equal to price,in contrast to the usual situation for a monopoly,in which price is higher than is marginal revenue.

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With perfect price discrimination, the monopoly can charge each customer based on their willingness to pay, resulting in a marginal revenue equal to the price charged. In contrast, in a typical monopoly situation, the price is set higher than marginal revenue in order to maximize profits.

If a Monopoly Can Engage in Perfect Price Discrimination,then Its