Perfect price discrimination:
A)allows each customer to pay exactly what they are willing and able to pay.
B)maximizes consumer surplus.
C)is not efficient.
D)minimizes producer surplus.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows a seller to charge each customer the exact amount they are willing and able to pay, thereby capturing all consumer surplus. This leads to the highest possible profits for the seller, but it is not efficient as there may be some potential customers who are excluded due to their low willingness or ability to pay. It also does not minimize producer surplus as the seller is able to capture all surplus.

Perfect Price Discrimination