(Figure: PPD) Refer to the Figure

question 1

Multiple Choice

(Figure: PPD) Refer to the figure. Which of the followingstatements best explains why a firm that perfectly pricediscriminates would sell additional units beyond a units ofoutput?

• A)A firm will not sell beyond a units of output.The firm will only sell exactly a, as it is the profit-maximizing rate of output For this firm.
• B)The marginal cost is less than consumers' willingness to pay for these units.
• C)The marginal cost is greater than consumers' willingness to pay for these units.
• D)A firm will not sell beyond a units of output, since the marginal cost is greater than the marginal revenue for these Units.

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Definitions:

Elemental Symbol

A one- or two-letter notation derived from the name of an element, used as a shorthand representation in chemical equations and formulas.

Sodium

A soft, silvery-white, highly reactive metal of the alkali metal group, denoted by the symbol Na, primarily found in salt (sodium chloride, NaCl) in the Earth's oceans and in mineral deposits.

Elemental Symbol

A short representation using letters to signify a chemical element on the periodic table.

Mercury

A heavy, silvery d-block element, also known as quicksilver, that is liquid at room temperature and used in thermometers, barometers, and batteries.