Figure 11.1.1
-Refer to Figure 11.1.1 above. To capture the consumer surplus along the B range, the firm would ideally charge:

Question

Quizplus · Accepted Answer

To capture the consumer surplus along the B range, the firm should ideally charge a higher price to consumers willing to pay more and a lower price to those willing to pay less. This is because charging the same higher price to all consumers (option B) would result in some consumers being priced out of the market and those who are still willing to pay the higher price not receiving any consumer surplus. Charging a higher price to consumers willing to pay less and a lower price to those willing to pay more (option C) would result in the firm capturing less consumer surplus and potentially losing some customers who are unwilling to pay the higher price. Charging random prices along the demand curve (option D) is not a feasible option as it is not something that the firm can predict or control.

Figure 11.1.1 -Refer to Figure 11.1.1 Above. to Capture the Consumer Surplus