Under which of the following is consumer surplus zero?
A) Only perfectly price-discriminating monopoly
B) Only price discrimination on the basis of the number of units purchased
C) All types of monopoly
D) Perfect competition
E) Only single-price monopoly

Question

Quizplus · Accepted Answer

Consumer surplus is zero under a perfectly price-discriminating monopoly because the monopolist charges each consumer the maximum they are willing to pay, leaving no surplus for consumers.

Under Which of the Following Is Consumer Surplus Zero