A monopolist who has a horizontal ATC schedule and charges the same monopoly price to all buyers
A) appropriates more consumer surplus as profit than a perfect price discriminator does.
B) appropriates less consumer surplus as profit than a perfect price discriminator does.
C) appropriates less consumer surplus as profit than a perfectly competitive firm does.
D) does not lower the amount of consumer surplus that buyers have compared with what they would have if instead they faced a perfectly competitive firm.

Question

Quizplus · Accepted Answer

A monopolist who charges a single price to all buyers cannot capture as much consumer surplus as a perfect price discriminator, who can capture the entire consumer surplus by charging each consumer the maximum they are willing to pay.

A Monopolist Who Has a Horizontal ATC Schedule and Charges