Perfect price discrimination will lead a firm to produce up to the point where price equals marginal cost, the efficient level of output.

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Perfect price discrimination means that the firm is able to charge each individual customer the maximum price they are willing to pay. This allows the firm to capture all consumer surplus, resulting in higher profits. In this scenario, the firm will produce up to the point where price equals marginal cost, which is the efficient level of output. This is because producing additional units beyond this point would result in additional costs that exceed the revenue generated from selling those units, lowering the firm's profits.

Perfect Price Discrimination Will Lead a Firm to Produce Up