Figure 14-16
-Refer to Figure 14-16.If the monopoly firm perfectly price discriminates,then the deadweight loss amounts to

Question

Figure 14-16 
-Refer to Figure 14-16.If the monopoly firm perfectly price discriminates,then the deadweight loss amounts to

Quizplus · Accepted Answer

If a monopoly firm perfectly price discriminates, it charges each consumer the maximum price they are willing to pay for the product. In this case, every consumer will pay a different price, but the total revenue will be maximized. Therefore, there is no deadweight loss because every unit that is produced will find a willing buyer at the price the firm charges. Thus, the deadweight loss amounts to $0.

Figure 14-16 -Refer to Figure 14-16.If the Monopoly Firm Perfectly Price Discriminates,then