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.What is the deadweight loss equal to when the monopolist engages in perfect price discrimination?
A)ABC
B)ADF
C)CEF
D)deadweight loss 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.What is the deadweight loss equal to when the monopolist engages in perfect price discrimination?
A)ABC 
B)ADF 
C)CEF 
D)deadweight loss will equal zero

Quizplus · Accepted Answer

When the monopolist engages in perfect price discrimination, it charges each customer their maximum willingness to pay and produces at the socially efficient level of output (where marginal cost equals demand). As a result, there is no deadweight loss, and the monopolist captures all of the consumer surplus. So, the best choice is D, where deadweight loss will equal zero.

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