If a monopolist can charge an all- or- nothing price, then:
A)consumer surplus is a meaningless notion.
B)consumer surplus is captured by consumers.
C)consumer surplus is minimized.
D)consumer surplus is captured by the monopolist.

Question

Quizplus · Accepted Answer

If a monopolist can charge an all-or-nothing price, it means that consumers only have one option - either pay the price or don't consume the good/service. Therefore, the monopolist has complete control over the price and can capture all of the consumer surplus. As a result, consumer surplus is not minimized or captured by consumers, but rather by the monopolist.

If a Monopolist Can Charge an All- Or- Nothing Price