anonymous
  • anonymous
If a pure monopolist can price discriminate by separating buyers into two or more groups: Answer the marginal revenue curve and the total revenue curve will now coincide. the marginal revenue curve will now shift to a position above the demand curve. the firm will face multiple marginal revenue curves. marginal revenue will become less at each level of output than it would be without price discrimination.
Mathematics
katieb
  • katieb
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anonymous
  • anonymous
I suspect the third choice is correct, but I am not totally sure. The 4th answer seems incorrect... if that were true, no monopolist would choose to price discriminate, since it would reduce marginal revenue at all output levels, effectively reducing total revenue.
anonymous
  • anonymous
Thank You Jake :)
anonymous
  • anonymous
You're welcome. I thought about it a little more... I don't think either of the first two choices really make sense either. So, still not 100% sure, but pretty sure it's the third choice. Good luck :)

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