A perfect price discriminator receives a price equal to marginal reven
A perfect price discriminator receives a price equal to marginal revenue for each unit.
What will be an ideal response?
ANSWER
True. A perfect price discriminator sets the price of each unit sold equal to the reservation price of the good. The price equals the maximum price a consumer will pay for a given unit. Thus, the price of each unit will equal the marginal revenue of each unit.
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