Use the figure below to answer the following questions.

Figure 13.4.5
-Consider the cost and revenue curves in Figure 13.4.5. If this is a perfect price-discriminating monopoly, what is consumer surplus?
A)EADH
B)EABH
C)ABD
D)KEA
E)None of the above

Question

Use the figure below to answer the following questions.
  
Figure 13.4.5
-Consider the cost and revenue curves in Figure 13.4.5. If this is a perfect price-discriminating monopoly, what is consumer surplus?
A)EADH 
B)EABH 
C)ABD 
D)KEA 
E)None of the above

Quizplus · Accepted Answer

In a perfect price-discriminating monopoly, the firm captures all consumer surplus by charging each consumer their maximum willingness to pay. Therefore, consumer surplus is zero.

Use the Figure Below to Answer the Following Questions