The accompanying figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the questions. 
-What is the change in total welfare if the firm moves from a perfect price discrimination model to a perfect competition framework?
A) There would be a loss of $160 in total welfare.
B) There would be a gain of $80 in total welfare.
C) There would be a loss of $40 in total welfare.
D) There would be a gain of $120 in total welfare.
E) There would be no change in total welfare.
Correct Answer:
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