Final answer:
Perfect price discrimination results in a monopolist's profit being greater than if they charged a single market price, as they can capture consumer surplus and earn maximum possible profits.
Step-by-step explanation:
When price discrimination occurs, and a producer can perfectly price discriminate, the producer's profit is b. greater than when the producer charges each customer the same profit-maximizing price where marginal revenue equals marginal cost. Perfect price discrimination enables a monopolist to capture what would have otherwise been consumer surplus, resulting in maximum possible profits. When price discrimination occurs, the producer's profit is greater than; marginal. The producer charges each customer the profit-maximizing price where marginal revenue equals cost.
In contrast to perfectly competitive markets, where firms produce at the quantity where price equals marginal cost, ensuring social benefits align with social costs, a monopolist practicing perfect price discrimination sets prices above marginal cost for each consumer, capturing the maximum conceivable profits. This scenario leads to no consumer surplus and can result in greater output compared to the standard monopolistic output level, aligning with that of a perfectly competitive industry. Thus, price discrimination allows the monopolist to earn more than it would by setting a single market price.