________ maximizes the quantity of goods sold because it matches each consumer with his or her willingness to pay.
A) Perfect price discrimination
B) Monopolistic competition
C) Total surplus
D) Marginal cost
E) Deadweight gain

Question

Quizplus · Accepted Answer

Perfect price discrimination allows a monopolist to charge each consumer their maximum willingness to pay, thereby maximizing the quantity of goods sold. This occurs because consumers who would not have purchased the good at a uniform price are now able to purchase it at a lower price more in line with their willingness to pay, increasing overall demand and sales for the monopolist.

________ Maximizes the Quantity of Goods Sold Because It Matches