A monopolist or an imperfectly competitive firm practices price discrimination primarily to:
A)increase profits.
B)expand plant size.
C)lower total costs.
D)reduce marginal costs.

Question

Quizplus · Accepted Answer

A monopolist or an imperfectly competitive firm practices price discrimination to increase profits by charging different prices to different customers based on their willingness to pay. This allows the firm to capture more consumer surplus and maximize their profits.

A Monopolist or an Imperfectly Competitive Firm Practices Price Discrimination