Use the following figure to answer the question : Figure 12-2 : shows the downward sloping demand and marginal revenue [MR] curves and the upward sloping marginal cost [MC] curve of a monopolist.
-Refer to Figure 12-2.What will be the consumer surplus when the monopolist practices first-degree price discrimination?
A)WVE
B)CVF
C)ZVN
D)Zero

Question

Use the following figure to answer the question : Figure 12-2 :  shows the downward sloping demand and marginal revenue [MR] curves and the upward sloping marginal cost [MC] curve of a monopolist. 
-Refer to Figure 12-2.What will be the consumer surplus when the monopolist practices first-degree price discrimination?
A)WVE 
B)CVF 
C)ZVN 
D)Zero

Quizplus · Accepted Answer

When the monopolist practices first-degree price discrimination, it charges each individual consumer the highest price they are willing to pay, which is equal to their individual demand curve. This means that consumer surplus is completely eliminated as consumers are made to pay their maximum willingness to pay. Therefore, the consumer surplus will be zero.

Use the Following Figure to Answer the Question : Figure