One way a monopoly can convert additional consumer surplus into economic profit is to
A) lower prices.
B) raise prices.
C) price discriminate.
D) become more competitive.
E) produce where price equals average total cost.

Question

Quizplus · Accepted Answer

If a monopoly practices price discrimination, it can charge different prices to different groups of consumers based on their willingness to pay. By doing so, it can convert some of the additional consumer surplus into economic profit. This is because the monopoly can charge higher prices to customers who are willing to pay more, while also attracting customers who are willing to pay less. Overall, this strategy allows the monopoly to increase its revenue and profit compared to charging a single price to all consumers.

One Way a Monopoly Can Convert Additional Consumer Surplus into Economic