The output of a (not perfect)price-discriminating monopoly is
A)less than a single-price monopoly.
B)more than a single-price monopoly but less than a perfectly competitive industry.
C)the same amount as a perfectly competitive industry.
D)more than a perfectly competitive industry.
E)less than a single-price monopoly but more than a perfectly competitive industry.

Question

Quizplus · Accepted Answer

A not perfect price-discriminating monopoly can charge different prices to different consumers based on their willingness to pay, allowing it to sell more output than a single-price monopoly (which charges the same price to all consumers) but still less than what would be produced in a perfectly competitive market, where prices equal marginal costs.

The Output of a (Not Perfect)price-Discriminating Monopoly Is