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When a market model moves from that of a monopoly to one in which perfect price discrimination is practiced, the deadweight loss:

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Answer:

The deadweight loss decreases.

Step-by-step explanation:

Deadweight loss is defined as the loss to society that is caused by price controls and taxes.

A monopoly market has control over the prices.

Price discrimination is the practice of charging a different price for the same good or service. There are three types of price discrimination – first-degree, second-degree, and third-degree price discrimination.

The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.

User Gustavo Vargas
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