Price discrimination can increase both the monopolist's profits and society's welfare.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopolist to charge different prices to different consumers based on their willingness to pay, potentially increasing the monopolist's profits by capturing more consumer surplus. Additionally, by tailoring prices to different market segments, it can lead to a more efficient allocation of goods and services, potentially increasing overall welfare by serving consumers who might otherwise be priced out of the market.

Price Discrimination Can Increase Both the Monopolist's Profits and Society's