-If the monopoly illustrated in the figure above could engage in perfect price discrimination, the deadweight loss would be

Question

Quizplus · Accepted Answer

Perfect price discrimination means the monopoly can charge each consumer the maximum they are willing to pay, thus selling each unit of output up to the point where the demand curve intersects the marginal cost curve. This eliminates the deadweight loss associated with monopolies, as the quantity produced and sold matches that of a perfectly competitive market.

-If the Monopoly Illustrated in the Figure Above Could Engage