economics hard Fill in the Blank

When a monopolist charges a different price for every single unit sold to every individual consumer based on their exact willingness to pay, it is called ___ degree price discrimination.

  1. InvITs (or Infrastructure Investment Trusts)
  2. quantitative
  3. first
  4. balance (or sum to zero)

Answer: first

First-degree (or perfect) price discrimination allows the monopolist to capture the entire consumer surplus, converting it into producer surplus. While theoretically efficient, it is practically impossible to implement because it requires perfect knowledge of every consumer's reservation price.

Topic Microeconomics - Monopoly
Exam Relevance UPSC Prelims, SSC CGL
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