The main reason a monopoly engages in price discrimination is that:
A) it wants to discriminate against a particular ethnic group.
B) doing so increases its profits.
C) it wants to discourage potential competitors.
D) by charging a lower price to some people, it may succeed in discouraging efforts to regulate it.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopoly to capture more consumer surplus and convert it into additional profit by charging different prices to different consumers based on their willingness to pay.

The Main Reason a Monopoly Engages in Price Discrimination Is