For a Monopoly Able to Practice Perfect Price Discrimination, the Market

question 19

Multiple Choice

For a monopoly able to practice perfect price discrimination, the market

• A)supply curve is horizontal.
• B)supply curve is the same as the marginal revenue curve.
• C)demand curve is the same as the marginal cost curve.
• D)demand curve is the same as the marginal revenue curve.
• E)demand curve is horizontal.

---

Definitions:

Economic Life

The estimated period over which an asset is expected to be economically useful to the owner.

Cost of Capital

The rate of return a company must earn on its investment projects to maintain its market value and attract funds.

Annual Rate of Return

The percentage of profit or loss on an investment over one year.

Accounting Data

Information and records concerning the financial transactions and status of a business, including ledgers, journals, financial statements, and more.