Using the above information, what is the dead-weight loss of monopoly if the publisher can price-discriminate?
A)$0
B)$80 000
C)$120 000
D)$200 000

Question

Quizplus · Accepted Answer

If the publisher can price discriminate, they can charge a higher price to consumers willing to pay more, while still selling to consumers who can only afford a lower price. By doing so, they can increase their profits and eliminate the dead-weight loss associated with monopoly pricing. Therefore, the dead-weight loss of monopoly with price discrimination is zero.

Using the Above Information, What Is the Dead-Weight Loss of Monopoly