With perfect price discrimination there is
A)no deadweight loss.
B)no producer surplus.
C)one single price.
D)an increase in consumer surplus.

Question

Quizplus · Accepted Answer

Perfect price discrimination involves charging every individual customer the maximum amount they are willing to pay for a good or service, resulting in no deadweight loss. This is because every unit of the good or service is sold at a price that is equal to its marginal cost, and there is no inefficient underproduction or overproduction. However, there can still be producer surplus, as long as the price charged is above the marginal cost of production. "One single price" and "an increase in consumer surplus" are not characteristics of perfect price discrimination.

With Perfect Price Discrimination There Is