Which of the following differs between a perfectly competitive market and a market with a perfectly price discriminating monopoly?
A) the amount of producer surplus
B) the quantity produced
C) the total surplus
D) None of the above because they are all the same in a perfectly competitive market and in a market with a perfectly price discriminating monopoly.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, producer surplus is typically lower because firms are price takers. In a perfectly price discriminating monopoly, the monopolist captures all consumer surplus as producer surplus, increasing the producer surplus compared to a competitive market.

Which of the Following Differs Between a Perfectly Competitive Market