A monopolist who practises price discrimination can increase sales but can never increase profits above the level that would result from a single price being set (using the intersection of marginal revenue and marginal cost).

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A monopolist who practices price discrimination can increase profits above the level that would result from a single price being set. This is because price discrimination involves charging different prices to different groups of consumers based on their willingness to pay, allowing the monopolist to capture a larger portion of consumer surplus. As long as the price charged to each group of consumers is above marginal cost, the marginal revenue from each group can exceed the marginal revenue from a single price, leading to higher profits overall.

A Monopolist Who Practises Price Discrimination Can Increase Sales but Can