Question

Compared to a monopoly that does not price​ discriminate, a monopolist who engages in perfect price discrimination will produce:_______

Answer 1

An output that maximizes revenue and profits. If a firm can price discriminate, it will sell its product or service at a different price to every single consumer. Perfect price discrimination refers to pricing your product at exactly the highest amount that each individual consumer is willing to pay, i.e. consumer surplus disappears.