-Refer to the table above.Comparing the monopoly outcome without price discrimination to the monopoly outcome with perfect price discrimination,profit is
A) the same.
B) lower when price discriminating.
C) greater when price discriminating.
D) greater when changing a uniform price.
E) either higher of lower;one cannot generalize.

Question

-Refer to the table above.Comparing the monopoly outcome without price discrimination to the monopoly outcome with perfect price discrimination,profit is
A) the same. 
B) lower when price discriminating. 
C) greater when price discriminating. 
D) greater when changing a uniform price. 
E) either higher of lower;one cannot generalize.

Quizplus · Accepted Answer

With perfect price discrimination, a monopolist can capture all consumer surplus as profit, leading to greater profit compared to a uniform pricing strategy where some consumer surplus is not captured.

-Refer to the Table Above