The more perfectly a monopoly can price discriminate,the
A)smaller its output and the lower its profit.
B)smaller its output and the higher its profit.
C)larger its output and the lower its profit.
D)larger its output and the higher its profit.
E)greater is consumer surplus.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopoly to charge different prices to different consumers based on their willingness to pay, leading to increased output and higher profits as the monopoly captures more consumer surplus.

The More Perfectly a Monopoly Can Price Discriminate,the