Use the following figure to answer the question : Figure 12-1 : shows the downward sloping demand and marginal revenue [MR] curves of a monopolist. The MR curve intersects the marginal cost [MC] curve at point B. MC is constant at the P₁.

-Refer to Figure 12-1. If the monopolist practices perfect price discrimination, consumer surplus will be equal to:

Question

Use the following figure to answer the question : Figure 12-1 : shows the downward sloping demand and marginal revenue [MR] curves of a monopolist. The MR curve intersects the marginal cost [MC] curve at point B. MC is constant at the P₁.

-Refer to Figure 12-1. If the monopolist practices perfect price discrimination, consumer surplus will be equal to:

Quizplus · Accepted Answer

When a monopolist practices perfect price discrimination, they charge each consumer the maximum they are willing to pay, thus capturing all the consumer surplus for themselves. This means the consumer surplus becomes zero.

Use the Following Figure to Answer the Question : Figure