The following figure shows the downward sloping demand and marginal revenue [MR] curves and the upward sloping marginal cost [MC] curve of a monopolist.
Figure 12-2
-Refer to Figure 12-2.What will be the consumer surplus when the monopolist practices first-degree price discrimination?
A)WVE
B)CVF
C)ZVN
D)Zero

Question

The following figure shows the downward sloping demand and marginal revenue [MR] curves and the upward sloping marginal cost [MC] curve of a monopolist.
Figure 12-2 
-Refer to Figure 12-2.What will be the consumer surplus when the monopolist practices first-degree price discrimination?
A)WVE 
B)CVF 
C)ZVN 
D)Zero

Quizplus · Accepted Answer

In first-degree price discrimination, the monopolist captures all consumer surplus by charging each consumer their maximum willingness to pay, leaving no consumer surplus.

The Following Figure Shows the Downward Sloping Demand and Marginal