The Following Figure Shows the Downward Sloping Demand and Marginal

question 87

Multiple Choice

The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P₁.
Figure 12-1
-Refer to Figure 12-1.If the monopolist practices perfect price discrimination,consumer surplus will be equal to:

• A)the area P₃AP₂.
• B)the area P₃CP₁.
• C)the area ABC.
• D)zero.

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