Price discrimination adds to social welfare in the form of which of the following?
(i) increased profits to the monopolist
(ii) increased consumer surplus
(iii) increased total surplus
A)(i) and (ii)
B)(ii) and (iii)
C)(i) and (iii)
D)(i), (ii) and (iii)

Question

Quizplus · Accepted Answer

Price discrimination can lead to increased profits for the monopolist and potentially increase total surplus by allowing for more efficient market segmentation and allocation of goods. However, it does not necessarily increase consumer surplus, as it often involves charging different prices to different consumers based on their willingness to pay.

Price Discrimination Adds to Social Welfare in the Form of Which