If a monopolist is able to perfectly price discriminate, then:
A) they will be able to charge every consumer a price equal to their marginal cost of production.
B) arbitrage will not exist.
C) prices will fall for those individuals with very inelastic demands.
D) there will be zero deadweight loss to society.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows a monopolist to capture all consumer surplus, converting it into producer surplus, thus eliminating deadweight loss.

If a Monopolist Is Able to Perfectly Price Discriminate, Then