Which of the following occurs if a monopolist is able to price discriminate?
A) the deadweight loss increases
B) output decreases
C) marginal revenue decreases
D) monopoly profits increase

Question

Quizplus · Accepted Answer

If a monopolist is able to price discriminate, it can charge different prices to different groups of consumers based on their willingness to pay. This allows the monopolist to capture more consumer surplus and increase its profits. As a result, monopoly profits increase. No changes occur in deadweight loss, output or marginal revenue.

Which of the Following Occurs If a Monopolist Is Able