A monopolist faces demand $P = 400 - 4 Q ^ { d }$ and has constant marginal cost $M C = 80$ . If this monopolist engages in first-degree price discrimination, consumer surplus will be:
A)0
B)1,600
C)3,200
D)12,800

Question

Quizplus · Accepted Answer

First-degree price discrimination means the monopolist charges each consumer the maximum they are willing to pay, capturing all the consumer surplus for themselves. Therefore, consumer surplus will be 0.

A Monopolist Faces Demand P=400−4QdP = 400 - 4 Q ^ { d }P=400−4Qd

A Monopolist Faces Demand $P = 400 - 4 Q ^ { d }$