Group price discrimination results in social welfare that ________ under a single-price monopoly.
A)is greater than
B)is lower than
C)is the same as
D)might be greater or might be lower than

Question

Quizplus · Accepted Answer

Group price discrimination can lead to different outcomes in terms of social welfare compared to a single-price monopoly, depending on how the price discrimination is implemented and the specific characteristics of the market and consumer groups. It can either increase social welfare by better allocating resources and serving more consumers or decrease it if it leads to higher prices for some consumers without increasing overall output.

Group Price Discrimination Results in Social Welfare That ________ Under