Question

Consumers who put a high value on a serviceA) are better off with perfect price discrimination.B) are better off under a single-price monopoly.C) are indifferent between perfect price discrimination and a single-price monopoly.D) incur deadweight loss under either single-price monopoly or perfect price discrimination.

Answer 1

Answer:

b. are better off under a single-price monopoly

Explanation:

Consumers who put a high value on a service are better off under a single-price monopoly. Under perfect price discrimination, every consumer is charged equal to the maximum willingness to pay then in the case of a high value on service person will be charged very high than a single price monopoly so the consumer is better with single-price monopoly.