A monopolist practicing (perfect) price discrimination has
A)a larger deadweight loss triangle than a single-price monopolist has.
B)the same deadweight loss triangle as a single-price monopolist.
C)a deadweight loss triangle one-half the size of what it would be with uniform pricing.
D)no deadweight loss triangle.

Question

Quizplus · Accepted Answer

A monopolist practicing perfect price discrimination charges each consumer their maximum willingness to pay, thus selling to every consumer whose willingness to pay is above the cost of production. This eliminates the deadweight loss typically associated with monopoly pricing, where a single price for all leads to underproduction and inefficiency.

A Monopolist Practicing (Perfect) Price Discrimination Has