A monopolist who has a horizontal ATC schedule and perfectly price discriminates
A) leaves buyers a decreased but still positive amount of consumer surplus.
B) increases the amount of consumer surplus that is lost to the buyers and not gained by the monopolist.
C) appropriates all consumer surplus as profit.
D) does not change the amount of consumer surplus that buyers had before the monopolist perfectly price discriminated.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows a monopolist to charge each consumer the maximum they are willing to pay, thus transferring all consumer surplus to the monopolist as profit.

A Monopolist Who Has a Horizontal ATC Schedule and Perfectly