The MR function of a perfect price- discriminating monopolist:
A)is independent of output.
B)lies everywhere below the AR function.
C)is undefined.
D)coincides with the market demand curve.

Question

Quizplus · Accepted Answer

The MR function of a perfect price-discriminating monopolist coincides with the market demand curve, as all units are sold at the maximum price each individual is willing to pay. Therefore, the monopolist can capture all consumer surplus and the MR curve is the same as the market demand curve.

The MR Function of a Perfect Price- Discriminating Monopolist