Reference: Ref 14-4 (Figure: Perfect Price Discrimination) Refer to the figure. For a firm practicing perfect price discrimination, calculate the dollar amount of consumer surplus in this market.
A) $15,000
B) $20,000
C) $0
D) $5,000

Question

Reference: Ref 14-4 (Figure: Perfect Price Discrimination) Refer to the figure. For a firm practicing perfect price discrimination, calculate the dollar amount of consumer surplus in this market.
A) $15,000 
B) $20,000 
C) $0 
D) $5,000

Quizplus · Accepted Answer

Perfect price discrimination means that the firm is able to charge each individual the maximum that they are willing to pay for the product, resulting in no consumer surplus. Therefore, the dollar amount of consumer surplus in this market is zero.

Reference: Ref 14-4 (Figure: Perfect Price Discrimination) Refer to the Figure