Refer to Figure 153 If this firm were able to perfectly pric

Refer to Figure 15-3. If this firm were able to perfectly price discriminate, which letter represents the amount of output it would produce?

Options are: A, B, C, D, E, F, G, H, I, J

Figure 15-3

Solution

J

Perfect price discrimination means producer will charge the consumer price equal to their willingness to pay.

Thus in perfect price discrimination p=ATC.