Use the Following Figure to Answer the Question : Figure

question 48

Multiple Choice

Use the following figure to answer the question : Figure 12-1 : 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 P₁.

-Refer to Figure 12-1. If the monopolist perfectly price discriminates, profit will be equal to:

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

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Definitions:

Indirect Approach

A communication strategy where the main point or request is presented after providing background information or context, often used to soften the message or persuade.

Audience Resistance

The reluctance or opposition from an audience to accept or agree with the message being communicated.

Circular Reasoning

A logical fallacy in which the conclusion is supported by premises that assume the truth of the conclusion instead of proving it.

Faulty Analogies

Comparisons made between two things that are dissimilar in significant ways, leading to misleading or erroneous conclusions.