Which of the following statements about perfect price discrimination is false?
A)There is no consumer surplus if a firm engages in perfect price discrimination.
B)Perfect price discrimination occurs when the seller charges the highest price each consumer would be willing to pay for the product.
C)A condition for perfect price discrimination is that it must be costlier to service some customers than others.
D)For the price-discriminating firm, its marginal revenue curve coincides with its demand curve.

Question

Quizplus · Accepted Answer

The statement that perfect price discrimination must be costlier to service some customers than others is false. Perfect price discrimination does not require differential costs of service; it only requires the ability to identify and charge each customer their willingness to pay.

Which of the Following Statements About Perfect Price Discrimination Is