A perfect price-discriminating monopoly produces
A)less than a single-price monopoly.
B)more than a single-price monopoly but less than a perfectly competitive industry.
C)less than a monopoly that practices price discrimination but not perfect price discrimination.
D)more than a perfectly competitive industry.
E)the same amount as a perfectly competitive industry.

Question

Quizplus · Accepted Answer

A perfect price-discriminating monopoly is able to sell each unit of output at the maximum price each consumer is willing to pay, thus it can sell the same quantity as a perfectly competitive industry by capturing the entire consumer surplus and converting it into producer surplus.

A Perfect Price-Discriminating Monopoly Produces