If a pure monopolist can price discriminate by separating buyers into two or more groups,
A)the marginal revenue curve and the total revenue curve will now coincide.
B)the marginal revenue curve will now shift to a position above the demand curve.
C)the firm will face multiple marginal revenue curves.
D)marginal revenue will become less at each level of output than it would be without price discrimination.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopolist to charge different prices to different groups of consumers, effectively creating separate markets with their own demand curves. This results in multiple marginal revenue curves, one for each segmented group, rather than a single marginal revenue curve for the entire market.

If a Pure Monopolist Can Price Discriminate by Separating Buyers