The deadweight loss with perfect price discrimination is
A) equal to the deadweight loss of a single-price monopoly.
B) sometimes less than and sometimes more than the deadweight loss of a single-price monopoly.
C) more than the deadweight loss of a single-price monopoly.
D) zero.
E) larger than the deadweight loss with perfect competition.

Question

Quizplus · Accepted Answer

With perfect price discrimination, the monopolist is able to capture all of the consumer surplus, resulting in no deadweight loss as every unit produced will be sold at its maximum willingness-to-pay. Therefore, the deadweight loss is zero.

The Deadweight Loss with Perfect Price Discrimination Is