With price discrimination,a monopoly
A) converts consumer surplus into economic profit.
B) converts producer surplus into economic profit.
C) can charge a single price to all customers.
D) produces less output than if it does not price discriminate.
E) converts consumer surplus into deadweight loss.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopoly to charge different prices to different customers based on their willingness to pay. This allows the monopoly to capture more consumer surplus as economic profit. Therefore, price discrimination converts consumer surplus into economic profit.

With Price Discrimination,a Monopoly