When a monopolist practises price discrimination as opposed to setting a single price,deadweight loss decreases.

Question

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Price discrimination enables a monopolist to charge higher prices to consumers with a comparatively inelastic demand and lower prices to customers with a more elastic demand. This results in an increase in total output and an increase in consumer surplus, reducing deadweight loss. Therefore, when a monopolist practices price discrimination, deadweight loss decreases.

When a Monopolist Practises Price Discrimination as Opposed to Setting