With perfect price discrimination,a monopolist:
A)must lower the price on all units to increase sales.
B)will charge each consumer the maximum price they are willing to pay.
C)does not have a definite profit-maximizing level of output.
D)has a marginal revenue curve that lies below the demand curve.

Question

Quizplus · Accepted Answer

With perfect price discrimination, the monopolist can charge each consumer the maximum price they are willing to pay, maximizing their profits. This means that the price charged will be different for each unit sold, and the monopolist will extract all the consumer surplus.

With Perfect Price Discrimination,a Monopolist