Use the Following to Answer Questions

question 218

Multiple Choice

Use the following to answer questions:
Figure: Perfect Price Discrimination
-(Figure: Perfect Price Discrimination) Refer to the figure. Which curve represents the marginal revenue (MR) curve for the monopolist who practices perfect price discrimination?

• A) the marginal cost curve
• B) the demand curve
• C) the average cost curve
• D) a downward-sloping line that lies beneath the demand curve

---

Definitions:

Price-leadership Model

A strategy where the dominant firm in a market sets the price of goods or services, and other firms in the industry follow suit.

Demand Elasticity

Demand Elasticity measures how sensitive the quantity demanded of a good or service is to a change in its price, income levels, or other factors.

Learning Organisations

Continuously change and improve using the lessons of experience.