Look at the figure The Profit-Maximizing Output and Price. Assume that there are no fixed costs and AC = MC = $200. The monopolist who can use price discrimination perfectly will produce an output of diamonds. --- - O 20 16

Look at the figure The Profit-Maximizing Output and Price. Assume that there are no fixed costs and AC = MC = $200. The monopolist who can use price discrimination perfectly will produce an output of diamonds. --- - O 20 16

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Price, cost,
marginal
revenue of
diamond
$1,000
800
ator
600
400
MC
200
-200
MR
-400
20
8 10
Quantity of diamonds
16
Look at the figure The Profit-Maximizing Output and Price. Assume that there are no fixed
costs and AC = MC = $200. The monopolist who can use price discrimination perfectly will
produce an output of
%3D
%3D
diamonds.
O 20
0 6
О 16
O None of these options is correct.

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