A monopolist who practices price discrimination can increase sales but can never increase profits above the level that would pertain if the single price was set so that marginal revenue and marginal cost are equal.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopolist to capture more consumer surplus and increase profits beyond what would be possible with a single price, as it can charge different prices to different consumers based on their willingness to pay.

A Monopolist Who Practices Price Discrimination Can Increase Sales but Can