Perfect price discrimination results in zero dollars of consumer surplus.

Name: Perfect price discrimination results in zero dollars of consumer surplus.
Brand: Quizplus
Rating: 4.7 (32 reviews)

Question

Quizplus · Accepted Answer

Perfect price discrimination (also known as first-degree price discrimination) involves charging each customer the maximum price they are willing to pay for a product or service. This means the consumer would pay their entire willingness-to-pay or reservation price, resulting in no consumer surplus.

Perfect Price Discrimination Results in Zero Dollars of Consumer Surplus