With Perfect Price Discrimination ________,And Production Is Expanded Until Marginal

question 176

Multiple Choice

With perfect price discrimination ________,and production is expanded until marginal revenue equals ________.

• A) the firm's demand curve becomes its marginal revenue curve; marginal cost
• B) the firm's demand curve becomes its marginal revenue curve; average total cost
• C) the firm's marginal revenue curve bisects the angle with which demand intersects the price-axis; marginal cost
• D) the firm's marginal revenue curve bisects the angle with which demand intersects the price-axis; average total cost
• E) economic profit is maximized when the lowest price equals marginal cost; average total cost.

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Definitions:

Center and Vertices

In geometry, the central point of a shape and the points that define its outermost corners or parameters, especially in polygons and ellipses.

Method of Substitution

A technique used in algebra to solve systems of equations by solving one equation for one variable and then substituting that expression into the other equation.

System of Equations

A set of equations with the same variables, where the solution must satisfy every equation in the system.

Graph Equations

A visual representation of the solutions to an equation, typically plotted on a coordinate plane.