The Figure Given Below Shows the Demand Curves of Two

question 44

Multiple Choice

The figure given below shows the demand curves of two classes of buyers, for tickets to a football match.Figure 11.4
D₁: Demand curve of group 1
D₂: Demand curve of group 2
MR₁: Marginal revenue of group 1
MR₂: Marginal revenue of group 2
MC: Marginal cost
-Perfect price discrimination occurs when:

• A)each customer is charged the maximum price that each is willing and able to pay.
• B)two classes of customers are charged different prices as they have the same elasticities of demand.
• C)senior citizens are offered restaurant discounts.
• D)the firm sets MR < MC for each class of customers.
• E)the firm charges same price to different customers so that it is equal to the equilibrium price.

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