If a monopolist can practice perfect price discrimination, the monopolist will
A)eliminate consumer surplus.
B)eliminate deadweight loss.
C)maximize profits.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

If a monopolist practices perfect price discrimination, they are able to charge each individual consumer their maximum willingness to pay, resulting in the elimination of consumer surplus. As a result, the monopolist is able to capture all of the surplus for themselves, maximizing profits. Additionally, because there is no longer any deadweight loss in the market, society as a whole benefits from the allocation of resources being more efficient.

If a Monopolist Can Practice Perfect Price Discrimination, the Monopolist