Relative to a monopoly charging a single price to all consumers, perfect price discrimination ________ producer surplus and ________ consumer surplus.
A)increases; decreases
B)increases; increases
C)decreases; decreases
D)decreases; increases.

Question

Quizplus · Accepted Answer

If a monopolist perfectly price discriminates, then will capture all of the economic surplus, and consumer surplus will be zero.

Relative to a Monopoly Charging a Single Price to All