With perfect price discrimination,a monopoly can extract the ________ price each customer is willing to pay and thereby obtain the entire ________ surplus.
A) maximum; consumer
B) minimum; producer
C) maximum; producer
D) minimum; consumer
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows a monopoly to charge each customer the maximum price they're willing to pay. This means that the monopolist is able to capture the entire consumer surplus, leaving no surplus for the consumer. Therefore, the correct answer is A) maximum; consumer.

With Perfect Price Discrimination,a Monopoly Can Extract the ________ Price