​When a firm practices perfect price discrimination,

A) ​Consumer surplus is maximized
B) Producer surplus is minimized
C) Producer surplus is maximized
D) ​None of the above

Perfect Price Discrimination

A pricing strategy where a seller charges the maximum possible price to each customer based on their willingness to pay, capturing all consumer surplus as profit.

Consumer Surplus

The discrepancy between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive, serving as an indicator of producer welfare.