Which of the following occurs with both perfectly price- discriminating and single- price monopolies?
A) The amount of output is inefficient.
B) Deadweight loss is created.
C) All consumer surplus goes to the monopoly.
D) There is a redistribution of consumer surplus to the monopoly.

Question

Quizplus · Accepted Answer

In both perfectly price-discriminating and single-price monopolies, consumer surplus is redistributed to the monopoly, although the extent and nature of this redistribution differ between the two types.

Which of the Following Occurs with Both Perfectly Price- Discriminating