Which of the following is TRUE about a perfect price discriminating monopolist?
A) There is inefficiency.
B) All consumers pay a price equal to marginal cost.
C) There is no consumer surplus.
D) There is zero economic profit.

Question

Quizplus · Accepted Answer

A perfect price discriminating monopolist charges each consumer their maximum willingness to pay, capturing all consumer surplus as profit, resulting in no consumer surplus.

Which of the Following Is TRUE About a Perfect Price