Question

In ____ price discrimination, the monopolist charges each consumer the highest price that purchaser is willing to pay for each unit purchased

Answer 1

Perfect price discrimination

Step-by-step explanation:

Perfect price discrimination or first degree discrimination is defined as one in which the maximum price possible is charged for each unit of product sold to the customer.

This is aimed at capturing all consumer surplus for the monopoly.

This can occur for example in cases where the zip code of clients is located in an area where wealthy people reside.

The monopolist can charge the highest possible price based on the location.