Price discrimination can benefit some consumers when
A)the additional profit realized by the monopolist equals the cost incurred
B)the government comes in to regulate the market
C)competitors are also able to price discriminate
D)those consumers pay a price lower than the price they would have to pay a single-price monopolist
E)those consumers pay a price higher than the price they would have to pay a single-price monopolist

Question

Quizplus · Accepted Answer

Price discrimination allows a monopolist to charge different prices to different groups of consumers based on their individual demand and willingness to pay. As a result, price discrimination can benefit some consumers who are able to purchase the same product at a lower price than they would have to pay to a single-price monopolist. This is because the monopolist is able to capture more of the consumer surplus by charging different prices based on the consumer's willingness to pay. Therefore, choice D is the best option as the only option that describes the benefit of price discrimination to some consumers.

Price Discrimination Can Benefit Some Consumers When