FIGURE 10- 4 Suppose a monopolist faces the demand curve and cost curves shown below.

-Refer to Figure 10- 4.If the monopolist is practicing perfect price discrimination and is maximizing its profits,the consumer surplus is represented by the area

Question

FIGURE 10- 4 Suppose a monopolist faces the demand curve and cost curves shown below.
 
-Refer to Figure 10- 4.If the monopolist is practicing perfect price discrimination and is maximizing its profits,the consumer surplus is represented by the area

Quizplus · Accepted Answer

When a monopolist practices perfect price discrimination, they charge each consumer their willingness to pay, meaning there is no consumer surplus. Therefore, the answer is E, "There is no consumer surplus in this case."

FIGURE 10- 4 Suppose a Monopolist Faces the Demand Curve