Suppose that there are four consumers whose maximum willingness to pay for a good is $20, $15, $8, and $4, respectively. A firm can produce and sell the good at a constant marginal cost of $6. If the firm practiced perfect price discrimination, its total revenues would equal:
Suppose that there are four consumers whose maximum willingness to pay for a good is $20, $15, $8, and $4, respectively. A firm can produce and sell the good at a constant marginal cost of $6. If the firm practiced perfect price discrimination, its total revenues would equal:
$47.
$43.
$24.
$18.