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 with single-price monopoly.

Question

Quizplus · Accepted Answer

Perfect price discrimination results in less efficiency than a single-price monopoly because it eliminates consumer surplus, which leads to a deadweight loss.

When Perfect Price Discrimination Occurs, Which One of the Following