Exhibit 9-17
-Which area in Exhibit 9-17 represents deadweight loss under monopoly with perfect price discrimination?
A) area a
B) area b
C) area c
D) there is no deadweight loss
E) area e

Question

Exhibit 9-17 
-Which area in Exhibit 9-17 represents deadweight loss under monopoly with perfect price discrimination?
A) area a 
B) area b 
C) area c 
D) there is no deadweight loss 
E) area e

Quizplus · Accepted Answer

Under perfect price discrimination, a monopoly captures all consumer surplus, and there is no deadweight loss because the firm produces the socially optimal quantity.

Exhibit 9-17 -Which Area in Exhibit 9-17 Represents Deadweight Loss Under Monopoly