Figure 15-18
-Refer to Figure 15-18. If the monopoly firm perfectly price discriminates, then consumer surplus amounts to
A)$0.
B)$1,000.
C)$2,000.
D)$4,000.

Question

Figure 15-18 
-Refer to Figure 15-18. If the monopoly firm perfectly price discriminates, then consumer surplus amounts to
A)$0. 
B)$1,000. 
C)$2,000. 
D)$4,000.

Quizplus · Accepted Answer

When a monopoly firm perfectly price discriminates, it charges each consumer their maximum willingness to pay, eliminating all consumer surplus. Therefore, the consumer surplus in this scenario is $0.

Figure 15-18 -Refer to Figure 15-18. If the Monopoly Firm Perfectly Price