Which of the following is perfectly price-discriminating monopolist able to do
A)maximize profit, and produce a socially optimal level of output
B)maximize profit, but not produce a socially optimal level of output
C)produce a socially optimal level of output, but not maximize profit
D)produce a socially optimal level of output, and minimize the total cost

Question

Quizplus · Accepted Answer

A perfectly price-discriminating monopolist can charge each consumer their maximum willingness to pay, capturing all consumer surplus as profit, and thus can produce the socially optimal level of output while maximizing profit.

Which of the Following Is Perfectly Price-Discriminating Monopolist Able to Do