If the local phone company, a monopolist, perfectly price-discriminated, it would have lower total surplus than a monopolist that doesn't use price discrimination.

Question

Quizplus · Accepted Answer

Perfect price discrimination leads to a higher total surplus because the monopolist captures all consumer surplus, but no deadweight loss occurs, unlike with single-price monopoly.

If the Local Phone Company, a Monopolist, Perfectly Price-Discriminated, It