If one were to compare a competitive market to a monopoly that engages in perfect price discrimination,what could one say
A)In both cases, total social welfare is the same.
B)Total social welfare is maximized in the competitive market, but not in the perfectly discriminating monopoly.
C)In both cases, some potentially mutually beneficial trades do not occur.
D)Consumer surplus is the same in both cases.

Question

Quizplus · Accepted Answer

In both a competitive market and a monopoly with perfect price discrimination, total social welfare is maximized because the monopolist captures all consumer surplus, leaving no deadweight loss.

If One Were to Compare a Competitive Market to a Monopoly