A perfect price-discriminating monopoly is
A)less efficient than a single-price monopoly.
B)more efficient than a single-price monopoly,but less efficient than a perfectly competitive industry.
C)as efficient as a single-price monopoly.
D)more efficient than a perfectly competitive industry.
E)as efficient as a perfectly competitive industry.

Question

Quizplus · Accepted Answer

A perfect price-discriminating monopoly can achieve the same level of efficiency as a perfectly competitive industry because it can charge each consumer the maximum they are willing to pay, thereby eliminating consumer surplus and deadweight loss, and producing at a level where price equals marginal cost, just like in perfect competition.

A Perfect Price-Discriminating Monopoly Is