Refer to the information provided in Figure 13.12 below to answer the questions that follow. Figure 13.12
-Refer to Figure 13.12. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. How much surplus is realized by consumers?
A) $0
B) $16,000
C) $32,000
D) Indeterminate from the given information.

Question

Refer to the information provided in Figure 13.12 below to answer the questions that follow.  Figure 13.12
-Refer to Figure 13.12. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. How much surplus is realized by consumers?
A) $0 
B) $16,000 
C) $32,000 
D) Indeterminate from the given information.

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist captures all consumer surplus by charging each consumer their maximum willingness to pay. Therefore, consumer surplus is $0.

Refer to the Information Provided in Figure 13