If a merchant could charge a price for a good which reflected the marginal utilities of each unit sold, then consumer surplus for that good would not be enjoyed by the consumers.

Question

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Consumer surplus is the difference between the price that a consumer is willing to pay for a good and the price that they actually pay. If a merchant were able to charge a price that reflected the exact marginal utility of each unit sold, then there would be no opportunity for consumers to obtain any additional value or "surplus" from the transaction. Therefore, consumer surplus would not be enjoyed by consumers.

If a Merchant Could Charge a Price for a Good