If a monopolist can engage in perfect price discrimination:
A) it produces at the socially efficient level.
B) consumer surplus is maximized.
C) producer surplus is minimized.
D) the government may impose fines on the monopolist.

Question

Quizplus · Accepted Answer

In perfect price discrimination, the monopolist charges each consumer their maximum willingness to pay, leading to production at the socially efficient level where marginal cost equals marginal benefit.

If a Monopolist Can Engage in Perfect Price Discrimination