Use the figure below to answer the following question. Figure 12.4.1
-When perfect price discrimination occurs,which one of the following statements is false?
A)Buyers cannot resell the product.
B)The firm can distinguish between buyers.
C)The firm sets prices.
D)The firm captures consumer surplus.
E)The outcome is less efficient than a single-price monopoly.

Question

Use the figure below to answer the following question.  Figure 12.4.1
-When perfect price discrimination occurs,which one of the following statements is false?
A)Buyers cannot resell the product. 
B)The firm can distinguish between buyers. 
C)The firm sets prices. 
D)The firm captures consumer surplus. 
E)The outcome is less efficient than a single-price monopoly.

Quizplus · Accepted Answer

Perfect price discrimination results in the firm charging each buyer their maximum willingness to pay, which eliminates all consumer surplus. This means that the outcome is less efficient than a single-price monopoly, where some consumer surplus still exists.

Use the Figure Below to Answer the Following Question