When a monopolist can perfectly price discriminate, it follows that
A)price is greater than marginal revenue.
B)price is less than marginal cost at the quantity of output it chooses to produce.
C)the monopolist is resource-allocative efficient.
D)its demand curve lies above its marginal revenue curve.

Question

Quizplus · Accepted Answer

When a monopolist can perfectly price discriminate, it charges each consumer their maximum willingness to pay, capturing all consumer surplus and producing the socially optimal quantity where price equals marginal cost, thus achieving resource-allocative efficiency.

When a Monopolist Can Perfectly Price Discriminate, It Follows That