Perfect price discrimination occurs only in perfect competition.

Question

Quizplus · Accepted Answer

Perfect price discrimination, or first-degree price discrimination, occurs when a seller charges each buyer their maximum willingness to pay, capturing all consumer surplus. This concept does not require a perfectly competitive market; it can theoretically occur in any market structure, including monopolies or oligopolies, where the seller has some control over prices and sufficient information about buyers' willingness to pay.

Perfect Price Discrimination Occurs Only in Perfect Competition