Question

If the monopoly could have perfectly price discriminate, the monopoly will maximized total surplus. True or False.

Answer 1

the given statement is true and this is because of the fact that if Monopoly can price discriminate perfectly then it would charge is customer according to their willingness to payshow that the total consumer surplus would be captured and now the total surplus of the Monopoly is equal to the the earlier producer surplus and consumer surplus combined which now lies with that of the producer itself and this is the maximum surplus and this can be achieved by perfectly price discriminating on the whole and that is the reason why

(True) is the answer to this question