Because each customer pays according to her willingness to pay, a consumer maximises her consumer surplus under first-degree price discrimination.

Name: Because each customer pays according to her willingness to pay, a consumer maximises her consumer surplus under first-degree price discrimination.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under first-degree price discrimination, the seller charges each customer their maximum willingness to pay, leaving consumers with no consumer surplus.

Because Each Customer Pays According to Her Willingness to Pay