A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher price than another group, such as offering a student discount. c. charges a higher price but produces the same monopoly level of output as when a single price is charged. d. charges some customers a price below marginal cost because costs are covered by the high-priced buyers.

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Paola Steele

Business

26 March, 17:22

A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher price than another group, such as offering a student discount. c. charges a higher price but produces the same monopoly level of output as when a single price is charged. d. charges some customers a price below marginal cost because costs are covered by the high-priced buyers.

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Adriel Gonzalez · Answer 1

A monopolist that practices perfect price discrimination

a. creates no deadweight loss.

Explanation:

Theoretically, if a monopolist is able to practice perfect price discrimination:

marginal revenue curve = demand curve consumer surplus = 0 every customer pays the highest amount that they are willing to pay production level = perfectly competitive level of output