Price discrimination results in _____________ than would be observed under a single-price monopoly.
A) higher output and lower costs
B) lower output and higher costs
C) higher output and higher costs
D) lower output and lower costs

Question

Quizplus · Accepted Answer

Price discrimination typically results in higher output because the monopolist is able to sell additional units at lower prices to those with a lower willingness to pay, without having to lower the price for consumers with a higher willingness to pay. This does not necessarily affect costs.

Price Discrimination Results in _____________ Than Would Be Observed Under