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Dmitry [639]
3 years ago
15

"can charge a different price for each customer based on that buyers willingness to pay, they would:"

Business
1 answer:
Likurg_2 [28]3 years ago
5 0

Answer: b. Producer surplus is maxmized

Explanation:

As a result of inefficiency in a monopoly market, there exists a deadweight losses that arises because customers lose surplus due to not getting the optimal price. As a result, they are unwilling to spend at a certain amount to buy goods and services which leads to a loss for the monopoly as well.

If a monopoly is able to charge a different price for each customer based on that buyers willingness to pay they would be able to capture all the consumer surplus and make it producer surplus so that the producer surplus is maximized.

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Answer:

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3 years ago
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3 years ago
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4 years ago
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Hope this helps:)
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3 years ago
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