What is perfect price discrimination?
A) This occurs when a seller charges each separate consumer an amount that is exactly equal to his or her maximum willingness to pay.
B) This occurs when a seller is able to charge two different prices in different markets.
C) This occurs when consumer surplus is maximized in a given market.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

Perfect price discrimination occurs when a seller is able to charge each individual consumer the maximum amount that they are willing to pay for a good or service. This allows the seller to capture all consumer surplus and maximize profits. It is considered the most efficient form of pricing but is difficult to achieve in practice.

What Is Perfect Price Discrimination