In the case of perfect price discrimination, which of the following statements is true?

Show Answers

The marginal cost curve coincides with the demand curve.The average revenue is equal to the average cost.The average cost curve matches the marginal cost.The marginal revenue curve is the same as the demand curve.

Explanation

Option B is correct because, under perfect price discrimination, the firm captures all consumer surplus, leading to a situation where average revenue equals average cost. The other options incorrectly describe relationships between demand, marginal cost, and marginal revenue curves.