A price-discriminating monopoly charges
A) the same price to every buyer for the same product.
B) a different price to different types of buyers for the same product, even though there are no differences in costs.
C) a different price to different buyers, because the costs are different.
D) different prices to buyers for different products.
E) each customer a price that equals the marginal cost of serving that customer.

Question

Quizplus · Accepted Answer

Price-discriminating monopoly charges different prices to different types of buyers for the same product, even though there are no differences in costs. This allows the monopoly to capture more consumer surplus and increase their profits.

A Price-Discriminating Monopoly Charges