Question

econ 101: chap 31 F Econ 101: chap Econ 101: chap 35 con 101: chap 36 fral notes. GoogCQUESTIONS TOP Tests - ROSTER-20 https://ar.www.edu app/assessment taka launchp?course, assessment id. 146408, idcourse de 250142 18content id. 300383 18estep-mall Remaining Time: 2 hours, 54 minutes, 35 seconds Question Completion Status QUESTION 4 to pay Table: Turkeys Potential Willingness buyer Allen $30 Bess 25 Cal 20 Dean 15 Ed 10 Fred 5 The table above shows how much different consumers are willing to pay for a turkey dinner on Thanksgiving. Assume I have a constant marginal and average cost of $10 per dinner. If can perfectly discriminate as a monopost how many dinners will sell Oo QUESTIONS

Answer 1

Option D is correct. In case of Perfect Price discrimination under monopoly, the firm will set the price equal to marginal willingness of each consumer and will be in equilibrium when price is equal to his marginal cost. It means the equilibrium price is equal to $10. At that price he would sell 5 unit. As Fred Willingess to pay is less than his marginal cost hence he will not sell to fred.