Use the following to answer questions:
Figure: Perfect Price Discrimination
-(Figure: Perfect Price Discrimination) Refer to the figure. For a firm practicing perfect price discrimination, calculate the dollar amount of consumer surplus in this market.
A) $15,000
B) $20,000
C) $0
D) $5,000

Question

Use the following to answer questions:
Figure: Perfect Price Discrimination 
-(Figure: Perfect Price Discrimination) Refer to the figure. For a firm practicing perfect price discrimination, calculate the dollar amount of consumer surplus in this market.
A) $15,000 
B) $20,000 
C) $0 
D) $5,000

Quizplus · Accepted Answer

In perfect price discrimination, the producer captures the entire consumer surplus, resulting in zero consumer surplus in the market. Therefore, the correct answer is C ($0).

Use the Following to Answer Questions