Graph 15-6 This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.If the monopoly firm perfectly price discriminates, what will the consumer surplus be?
A)ABC
B)ADF
C)CEF
D)consumer surplus will equal zero

Question

Graph 15-6  This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.If the monopoly firm perfectly price discriminates, what will the consumer surplus be?
A)ABC 
B)ADF 
C)CEF 
D)consumer surplus will equal zero

Quizplus · Accepted Answer

If the monopoly firm perfectly price discriminates, it charges each individual consumer the maximum amount they are willing to pay, which eliminates all consumer surplus. Therefore, the consumer surplus will equal zero.

Graph 15-6 This Graph Depicts the Demand, Marginal-Revenue and Marginal-Cost