Which Statement Is True If the Monopolist Can Observe the Consumer's

Multiple Choice

Which statement is true if the monopolist can observe the consumer's type in the nonlinear-pricing application?

A) The monopolist supplies the consumer with as much of the good as if it were competitively priced.
B) The monopolist's profit approaches the upper bound from the simple linear pricing problem.
C) The monopolist extracts all of the surplus from the low type but not the high type.
D) The monopolist extracts all of the surplus from the high type but not the low type.