Monopolies that price discriminate do so because
A) they are able to do so and no one else can.
B) they can increase their profits.
C) it keeps them out of trouble with the government.
D) it is more efficient.

Question

Quizplus · Accepted Answer

Monopolies that price discriminate do so in order to increase their profits. By charging different prices to different groups of consumers, they are able to extract more value from each group and capture more of the consumer surplus for themselves. This is a common strategy for monopolies because they are able to control the market and set prices as they see fit, without having to compete with other firms.

Monopolies That Price Discriminate Do So Because