If a monopolist engages in ordinary price discrimination, the economy is:
A)inefficient in production and consumption.
B)inefficient in production, consumption and product- mix.
C)inefficient in production and product- mix.
D)inefficient in consumption and product- mix.

Question

Quizplus · Accepted Answer

Price discrimination can lead to inefficiencies in consumption and product mix, as it distorts the allocation of resources and goods based on consumers' willingness to pay rather than their actual preferences or the cost of production.

If a Monopolist Engages in Ordinary Price Discrimination, the Economy