Which of the following statements regarding perfect price discrimination is FALSE?
A) Only part of consumer surplus is captured by the firm as producer surplus.
B) For the firm, the market demand curve becomes the firm's marginal revenue curve.
C) The monopoly produces the output at which the marginal revenue equals the marginal cost.
D) No deadweight loss is created.

Question

Quizplus · Accepted Answer

In perfect price discrimination, the firm captures all of the consumer surplus as producer surplus, not just part of it.

Which of the Following Statements Regarding Perfect Price Discrimination Is