One of the benefits of perfect price discrimination over a monopoly is that it can increase
A) marginal welfare.
B) total welfare.
C) average welfare.
D) cost of production.
E) marginal cost.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows the monopolist to capture all consumer surplus and increase their profits. This can result in an increase in total welfare, as the increased profits can be used to invest in research and development or improve the quality of the product or service.

One of the Benefits of Perfect Price Discrimination Over a Monopoly