A price discriminating Monopolist is considered more efficient than a single prices monopolist because:
A)a price discriminating Monopolist knows its consumers better
B)a price discriminating Monopolist can set prices more efficiently
C)a price discriminating Monopolist produces a higher level of output
D)a price discriminating Monopolist can produce it's output at a lower cost

Question

Quizplus · Accepted Answer

A price discriminating monopolist can serve different segments of the market at different prices, which often leads to a higher level of output compared to a single-price monopolist who charges the same price to all consumers. This is because the price discriminating monopolist can capture consumer surplus by charging higher prices to those willing to pay more and lower prices to those with a lower willingness to pay, thus selling to more consumers overall.

A Price Discriminating Monopolist Is Considered More Efficient Than a Single