Question

When a monopolist switches from charging a single price to perfect price discrimination, it reduces the quantity produced. the firm's profit. consumer surplus. total surplus?

Answer 1

When a monopolist switches from charging a single price to perfect price discrimination, it reduces the consumer surplus.  Consumer surplus is defined as the difference between what a consumer believes they should pay for a good or service and the total amount that they actually do pay. The amount they pay is known as the market price and what they are willing to pay is noted on the demand curve.