Perfect price discrimination:
A)eliminates all consumer surplus.
B)maximizes producer surplus.
C)creates no deadweight loss.
D)All of these are true.

Question

Quizplus · Accepted Answer

Perfect price discrimination means charging each consumer the maximum they are willing to pay, thus transferring all consumer surplus to the producer, maximizing producer surplus, and eliminating deadweight loss because every unit of the good that can be sold at a price above its cost of production is sold.

Perfect Price Discrimination