The more perfectly a monopoly can price discriminate, the
A) smaller its output and the lower its profits.
B) smaller its output and the greater its profits.
C) larger its output and the lower its profits.
D) larger its output and the greater its profits.

Question

Quizplus · Accepted Answer

Perfect price discrimination allows a monopoly to capture consumer surplus by charging each consumer their maximum willingness to pay, leading to increased output and higher profits.

The More Perfectly a Monopoly Can Price Discriminate, the