True or False: A firm practicing perfect price discrimination can eliminate all consumer surplus and achieve allocative efficiency, but this practice may lead to decreased overall market welfare due to potential exclusion of lower-income consumers from the market.

The statement is true. Perfect price discrimination means that a firm charges each customer the highest price they are willing to pay, which allows the firm to capture all consumer surplus. By doing this, the firm can achieve allocative efficiency, where resources are distributed in a way that maximizes total welfare. However, this practice can also lead to decreased overall market welfare because it may exclude lower-income consumers who cannot afford the higher prices, preventing them from accessing the product or service. For example, if a concert ticket seller charges different prices based on customers' willingness to pay, wealthier individuals might attend while lower-income fans are left out, reducing overall enjoyment and participation in the event.