Question

Perfect price discrimination describes a situation in which the monopolist a charges exactly two different prices to exactly two different groups of customers. b maximizes consumer surplus. c experiences a zero economic profit. d knows the exact willingness to pay of each of its customers.

Answer 1

The correct answer is D

Step-by-step explanation:

Perfect price discrimination is a theory of economic in which the businesses or the firms able to charge the maximum amount or price that the customer is willing to pay for the products, leaving no customer surplus.

It is a situation where the monopolist knows that the exact willingness of the customers to pay for each of the product.