Reference: Ref 14-3 (Figure: PPD) Refer to the Figure

Multiple Choice

Reference: Ref 14-3 (Figure: PPD) Refer to the figure. Which of the following statements best explains why a firm that perfectly price discriminates would sell additional units beyond a units of output?

A) A firm will not sell beyond a units of output. The firm will only sell exactly a, as it is the profit-maximizing rate of output for this firm.
B) The marginal cost is less than consumers' willingness to pay for these units.
C) The marginal cost is greater than consumers' willingness to pay for these units.
D) A firm will not sell beyond a units of output, since the marginal cost is greater than the marginal revenue for these units.