A monopolist that engages in perfect price discrimination:
A)divides all buyers into two mutually exclusive groups.
B)refuses to sell its output to consumers of rival brands.
C)charges the same price for every unit sold.
D)charges a different price for every unit sold.
E)charges a high price to bulk consumers of its product.

Question

A monopolist that engages in perfect price discrimination:​
A)divides all buyers into two mutually exclusive groups.
B)refuses to sell its output to consumers of rival brands.
C)charges the same price for every unit sold.
D)charges a different price for every unit sold.
E)charges a high price to bulk consumers of its product.

Quizplus · Accepted Answer

A monopolist that engages in perfect price discrimination charges a different price for every unit sold, based on the willingness to pay of each individual consumer. This allows the monopolist to capture all possible consumer surplus and maximize profits.

A Monopolist That Engages in Perfect Price Discrimination:​

A Monopolist That Engages in Perfect Price Discrimination: