Which of the following statements about perfect price discrimination is false?

Which of the following statements about perfect price discrimination is false?

		A condition for perfect price discrimination is that it must be costlier to service some customers than others.
		There is no consumer surplus if a firm engages in perfect price discrimination.
		For the price-discriminating firm, its marginal revenue curve coincides with its demand curve.
		Perfect price discrimination occurs when the seller charges the highest price each consumer would be willing to pay for the product.

Solutions

Expert Solution

A condition for perfect price discrimination is that it must be costlier to service some customers than others.

A perfect price discrimination is where a monopolist charges prices equal to the maximum willingness to pay of the consumer which makes zero consumer surplus and the MR curve is same as the demand curve.

Rahul Sunny answered 1 year ago

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