Final answer:
A monopolist with perfect price discrimination would produce the quantity where marginal revenue equals marginal cost and charge buyers the maximum price they are willing to pay. They would earn the maximum possible profits.
Step-by-step explanation:
A monopolist with perfect price discrimination would determine the profit-maximizing quantity of output by setting the quantity where marginal revenue (MR) equals marginal cost (MC). They would then charge each buyer the maximum price they are willing to pay, resulting in no consumer surplus. The monopolist would earn the maximum possible profits since each buyer is paying exactly what they think the product is worth.