If the monopoly firm perfectly price discriminates then cons
If the monopoly firm perfectly price discriminates, then consumer surplus amounts to $0. $2,000. $1,000. $4,000.
Solution
In perfect price discrimination,monopolist set different prices for different buyers according to their willingness to pay.So no buyer is left out.
So it sells efficient quantity like in perfect competition. It sells 400 units.
But all surplus goes to producers.Because all buyers are charged their willingness to pay.So no consumer will get any surplus.
Hence consumer surplus is 0 $ under perfect price discrimination.
