Figure 15-7
The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist.

-Refer to Figure 15-7.If the monopoly firm perfectly price discriminates,what is the deadweight loss

Question

Figure 15-7
The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist.
 
-Refer to Figure 15-7.If the monopoly firm perfectly price discriminates,what is the deadweight loss

Quizplus · Accepted Answer

When a monopoly engages in perfect price discrimination, it charges each customer their willingness to pay, thereby capturing all consumer surplus and resulting in no deadweight loss. Therefore, the deadweight loss in this case is zero.

Figure 15-7 the Figure Depicts the Demand, Marginal-Revenue, and Marginal-Cost Curves of Curves