Figure 16-1 -Refer to Figure 16-1. What is the consumer surplus received under perfect price discrimination? A) the area under the demand curve above P₁ B) the area under the demand curve above P₃ C) the area under the demand curve above P₄ D) zero

Question

Quizplus · Accepted Answer

Under perfect price discrimination, the monopolist captures all consumer surplus by charging each consumer their maximum willingness to pay, leaving no consumer surplus.

Figure 16-1 -Refer to Figure 16-1. What Is the Consumer Surplus Received