Compared with a normal monopolist, an effective price-discriminating monopolist produces a:
A) smaller output at a lower profit.
B) smaller output but at a larger profit.
C) larger output at a larger profit.
D) larger output but at a lower profit.

Question

Quizplus · Accepted Answer

An effective price-discriminating monopolist can charge different prices to different consumers based on their willingness to pay, allowing the monopolist to capture more consumer surplus and convert it into additional profit. This typically results in a larger output and larger profit compared to a normal monopolist who charges a single price.

Compared with a Normal Monopolist, an Effective Price-Discriminating Monopolist Produces