Use the following figure to answer the question : Figure 12-1 : 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 P₁.

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

Question

Use the following figure to answer the question : Figure 12-1 : 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 P₁.

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

Quizplus · Accepted Answer

When a monopolist perfectly price discriminates, it charges each customer the maximum price they are willing to pay, which eliminates consumer surplus. However, it also eliminates the deadweight loss associated with charging a single price. Therefore, there is no deadweight loss when a monopolist perfectly price discriminates, and the answer is D.

Use the Following Figure to Answer the Question : Figure