Suppose a monopolist sells its good to three people. Each person can only purchase one good....

Suppose a monopolist sells its good to three people. Each person can only purchase one good. The first person is willing to pay $20 for the good, the second person is willing to pay $18, and the third is willing to pay $16. These three people make up the entire market for this monopolist. If the firm can perfectly price discriminate, how much revenue can it earn from selling 3 units?

$48

$60

$54

$16

$12

Which of the following is true of the relationship between price and marginal cost under monopolistic competition?

P = MC at all levels of output

P = MC only at the profit-maximizing quantity

P > MC at the profit-maximizing quantity

P < MC at the profit-maximizing quantity

P < MC at the quantities below the profit-maximizing quantity

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Expert Solution

Rahul Sunny answered 2 years ago

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