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Suppose That There Are Four Consumers Whose Maximum Willingnesses to Pay

Question 17

Multiple Choice

Suppose that there are four consumers whose maximum willingnesses to pay for a good are $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:


A) $18.
B) $24.
C) $43.
D) $47.

Correct Answer:

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