Figure 15-19
-Refer to Figure 15-19. If there are no fixed costs of production, monopoly profit with perfect price discrimination equals
A)$1.
B)$1,562.5.
C)$3,125.
D)$6,250.

Question

Figure 15-19 
-Refer to Figure 15-19. If there are no fixed costs of production, monopoly profit with perfect price discrimination equals
A)$1. 
B)$1,562.5. 
C)$3,125. 
D)$6,250.

Quizplus · Accepted Answer

With perfect price discrimination, a monopoly captures all consumer surplus as profit. Without fixed costs, the profit equals the total area under the demand curve up to the quantity produced, which is the entire area under the demand curve, given as $6,250.

Figure 15-19 -Refer to Figure 15-19. If There Are No Fixed Costs