A monopolist that can practice perfect price discrimination will not impose a deadweight loss on society.

Question

Quizplus · Accepted Answer

A monopolist that can practice perfect price discrimination charges each consumer their maximum willingness to pay, thus selling to every consumer who values the product above the cost of production. This results in no deadweight loss because the quantity produced and sold matches the socially efficient level, where price equals marginal cost for every unit sold.

A Monopolist That Can Practice Perfect Price Discrimination Will Not