A price-discriminating monopoly charges
A) different prices to buyers for different products.
B) the same price to every buyer for the same product.
C) a different price to different buyers, because the costs are different.
D) each customer a price that equals the marginal cost of serving that customer.
E) a different price to different types of buyers for the same product, even though there are no differences in costs.

Question

Quizplus · Accepted Answer

A price-discriminating monopoly charges different prices to different types of buyers for the same product, even though there are no differences in costs. This allows the monopoly to capture more consumer surplus and increase its profits.

A Price-Discriminating Monopoly Charges