Assume That a Monopolist Practices Perfect Price Discrimination

question 44

Multiple Choice

Assume that a monopolist practices perfect price discrimination. The firm's marginal revenue curve will

• A) be perfectly elastic.
• B) be equal to its demand curve.
• C) will be perfectly inelastic.
• D) will lie below its demand curve.

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Definitions:

Carboniferous

A geologic period and system that extends from the end of the Devonian Period, about 359.2 million years ago, to the beginning of the Permian Period, about 299 million years ago.

Reptiles

Cold-blooded vertebrates that breathe air, usually lay eggs, and have scales covering their bodies, including snakes, lizards, crocodiles, and turtles.

Chordates

Deuterostome animals that, at some time in their lives, have a cartilaginous, dorsal skeletal structure called a notochord; a dorsal, tubular nerve cord; pharyngeal slits; a postanal tail; and an endostyle (or its derivative, a thyroid gland).

Cyanobacteria

Photosynthetic microorganisms, formerly known as blue-green algae, that are important in oxygen production and nitrogen fixation.