Which of the following occurs with both perfectly price-discriminating and single-price monopolies?
A)The amount of output is inefficient.
B)All consumer surplus goes to the monopoly.
C)Deadweight loss is created.
D)There is a redistribution of consumer surplus to the monopoly.
E)Demand is perfectly elastic.

Question

Quizplus · Accepted Answer

Both perfectly price-discriminating and single-price monopolies result in a redistribution of consumer surplus to the monopoly, as they capture some or all of the consumer surplus through pricing strategies.

Which of the Following Occurs with Both Perfectly Price-Discriminating and Single-Price