If a company engages in perfect price discrimination, it is attempting to
A)attract more customers by charging lower prices to groups of new customers.
B)try different prices until it finds the exact market equilibrium price.
C)charge each customer the lowest price they would be willing to pay.
D)charge each customer their reservation price.

Question

Quizplus · Accepted Answer

Perfect price discrimination involves charging each customer their maximum willingness to pay, also known as their reservation price. This allows the company to capture the entire consumer surplus.

If a Company Engages in Perfect Price Discrimination, It Is