Exhibit 13-6 Refer to Exhibit 13-6.In perfect price discrimination,total welfare is area:

Question

Exhibit 13-6  Refer to Exhibit 13-6.In perfect price discrimination,total welfare is area:

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each customer their reservation price (the highest price they are willing to pay), resulting in both consumer surplus (areas a+b+c+d) and producer surplus (area e) being transferred to the monopolist. Therefore, the total welfare in this case is a+b+c+d+e, which is represented by choice D.