Compared to a single-price monopoly,when a monopoly can perfectly price discriminate,the deadweight loss
A) increases.
B) decreases.
C) remains the same.
D) becomes infinite.
E) probably changes, but more information is needed to determine if it increases, decreases, or remains constant.

Question

Quizplus · Accepted Answer

When a monopoly can perfectly price discriminate, it can charge each customer their willingness to pay, maximizing profits and eliminating consumer surplus. This results in higher total surplus, lower deadweight loss, and an increase in output compared to a single-price monopoly. Therefore, the deadweight loss decreases.

Compared to a Single-Price Monopoly,when a Monopoly Can Perfectly Price