In first-degree (perfect) price discrimination, a monopolist charges each consumer:

AThe same uniform price regardless of quantity bought

BThe maximum price each consumer is willing to pay

CA price equal to marginal cost

DA lower price for bulk purchases only

Explanation

First-degree price discrimination extracts all consumer surplus by charging each buyer their exact reservation price (maximum willingness to pay).

Submitted by: mcqstutor Team More Economics MCQs →