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If this monopolist practices perfect price discrimination, some consumers who would NOT buy the good from a single-price monopolist will now be able to buy
If this monopolist practices perfect price discrimination, some consumers who would NOT buy the good from a single-price monopolist will now be able to buy the good. A graph plots a demand curve and an MR curve with Quantity along the horizontal axis and Price, costs, marginal revenue along the vertical axis. The demand curve and the MR curve start at 16 on Price and have negative slopes. A point is marked on the demand curve at 4 on quantity, 12 on Price. A horizontal line, labeled MC equals AC, starts at 8 on price and runs parallel to quantity. The line intersects the MR curve at 4 on quantity and the demand curve at 8 on quantity. These are the consumers who are: not willing to pay enough to cover the marginal cost of producing the good. willing to pay more than $12. willing to pay less than $8. willing to pay between $8 and $12
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