With perfect price discrimination,the level of output
A) exceeds the efficient quantity.
B) is the same as the amount produced by any monopoly that price discriminates.
C) is the same as the amount produced in a perfectly competitive market.
D) equals the amount produced by a single-price monopoly.
E) is unknown.

Question

Quizplus · Accepted Answer

With perfect price discrimination, a monopolist charges each consumer their maximum willingness to pay, leading to an output level equivalent to that of a perfectly competitive market. This maximizes allocative efficiency by producing where price equals marginal cost.

With Perfect Price Discrimination,the Level of Output