Perfect price discrimination results in:
A) marginal revenue being in excess of the price charged for the good.
B) zero dollars of consumer surplus.
C) maximization of consumer surplus.
D) marginal revenue becoming equal to the marginal cost of the product for every unit sold.

Question

Quizplus · Accepted Answer

Perfect price discrimination means that each individual buyer is charged a price equal to their willingness to pay, resulting in the elimination of all consumer surplus. Therefore, the answer is B - zero dollars of consumer surplus.

Perfect Price Discrimination Results In