Consumer surplus is completely transferred to the price discriminating monopoly firm as profit under _____.
A)first-degree price discrimination
B)predatory pricing
C)third-degree price discrimination
D)block pricing

Question

Quizplus · Accepted Answer

In first-degree price discrimination, the monopolist charges each customer their maximum willingness to pay, which eliminates all consumer surplus. Therefore, all of the surplus is captured by the monopolist as profit.

Consumer Surplus Is Completely Transferred to the Price Discriminating Monopoly