Which of the following statements is TRUE?
A) Perfectly competitive markets are efficient, but monopoly markets never are efficient.
B) Perfectly competitive markets always reach equilibrium but monopoly markets never reach equilibrium.
C) Perfect price discriminating monopolists can eliminate all deadweight losses and achieve efficiency.
D) All the above statements are true.

Question

Quizplus · Accepted Answer

A perfectly price discriminating monopolist can theoretically eliminate deadweight loss by charging each consumer their maximum willingness to pay, thus achieving allocative efficiency.

Which of the Following Statements Is TRUE