Practice: If the firm’s marginal cost is constant at $3.00, output for a perfect price discriminating monopolist is:
How much would you pay for this? Perfect! That's the price!
Concept #1: Price Discrimination
Concept #2: Perfect Price Discrimination
Example #1: Price Discrimination
Practice: The marginal revenue for the perfectly price discriminating monopolist from the sale of the third unit is:
Practice: The total revenue for the perfectly price discriminating monopolist from selling five units of output is:
Practice: If the firm’s marginal cost is constant at $3.00, the perfect price discriminating firm will charge each customer:
