Compared to a single-price monopoly, when a monopoly can perfectly price discriminate, the deadweight loss
A) decreases.
B) remains the same.
C) increases.
D) becomes infinite.
E) probably changes.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows the monopoly to charge each customer the maximum price they are willing to pay, eliminating the deadweight loss associated with a single-price monopoly. Therefore, the deadweight loss decreases when a monopoly can perfectly price discriminate.

Compared to a Single-Price Monopoly, When a Monopoly Can Perfectly