________ transfers the consumer surplus under perfect competition to the producer.
A) Monopolistic competition
B) Deadweight loss
C) Social welfare
D) Profit maximizing
E) Perfect price discrimination

Question

Quizplus · Accepted Answer

Perfect price discrimination allows the producer to charge each consumer the maximum amount they are willing to pay for a product, which results in the entire consumer surplus being transferred to the producer. This is not the case for other market structures like monopolistic competition, where some consumer surplus remains. Deadweight loss and social welfare are concepts that are not directly related to the transfer of consumer surplus. Profit maximizing is a goal of all market structures, but it does not necessarily result in the transfer of the entire consumer surplus to the producer.

________ Transfers the Consumer Surplus Under Perfect Competition to the Producer