When a market model moves from that of a monopoly to one in which perfect price discrimination is practiced,the deadweight loss
A) increases.
B) remains unchanged.
C) can increase or decrease depending on the type of loss.
D) decreases.
E) fluctuates.

Question

Quizplus · Accepted Answer

Perfect price discrimination maximizes producer surplus and eliminates consumer surplus, leading to efficiency in the market. Therefore, deadweight loss decreases.

When a Market Model Moves from That of a Monopoly