Consumers who put a high value on a service
A)are better off with perfect price discrimination.
B)are better off under a single-price monopoly.
C)are indifferent between perfect price discrimination and a single-price monopoly.
D)incur deadweight loss under either single-price monopoly or perfect price discrimination.

Question

Quizplus · Accepted Answer

Consumers who put a high value on a service are better off under a single-price monopoly because they are willing to pay a higher price than others, and a single-price monopoly can charge them the higher price without losing them as customers. In contrast, perfect price discrimination could result in these consumers paying an even higher price, leading to inefficiencies and potential deadweight loss.

Consumers Who Put a High Value on a Service