Standard pricing by a monopolist:
A)is easy since there are few alternatives to extract more consumer surplus.
B)is thwarted by the drive to increase profits.
C)is seen as the moral alternative.
D)is helped by the fact that price discrimination is illegal.

Question

Quizplus · Accepted Answer

Monopolists have the power to set prices higher than the marginal cost in order to increase profits. While there may be some limitations due to competition and consumer demand, the monopolist will always strive to maximize their profits. Therefore, the drive to increase profits often thwarts the idea of standard pricing in a monopolistic market.

Standard Pricing by a Monopolist