Suppose a monopolist is able to charge each customer a price equal to that customer's willingness-to-pay for the product. Then the monopolist is engaging in
A)marginal cost pricing.
B)arbitrage pricing.
C)voodoo economics.
D)perfect price discrimination.

Question

Quizplus · Accepted Answer

This scenario describes perfect price discrimination, where a monopolist charges each customer their maximum willingness to pay, capturing all consumer surplus as profit.

Suppose a Monopolist Is Able to Charge Each Customer a Price