The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P₁.
Figure 12-1
-Refer to Figure 12-1.If the monopolist perfectly price discriminates,deadweight loss will be equal to:

Question

The following figure shows the downward sloping demand and marginal revenue [MR] curves of a monopolist.The MR curve intersects the marginal cost [MC] curve at point B.MC is constant at the price level P₁.
Figure 12-1

-Refer to Figure 12-1.If the monopolist perfectly price discriminates,deadweight loss will be equal to:

Quizplus · Accepted Answer

When the monopolist perfectly price discriminates, it charges each customer their exact willingness to pay, eliminating consumer surplus entirely. This means that the monopolist captures all the surplus and there is no deadweight loss. So the correct answer is D) zero.

The Following Figure Shows the Downward Sloping Demand and Marginal