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Concept #1: Price Discrimination

Concept #2: Perfect Price Discrimination

Example #1: Price Discrimination

Practice: If the firm’s marginal cost is constant at $3.00, output for a perfect price discriminating monopolist is: 

Practice: The marginal revenue for the perfectly price discriminating monopolist from the sale of the third unit is: 

Practice: The total revenue for the perfectly price discriminating monopolist from selling five units of output is: 

Practice: If the firm’s marginal cost is constant at $3.00, the perfect price discriminating firm will charge each customer: