A price-discriminating monopoly
A) sells a larger quantity than it would if it were a single-price monopoly.
B) is illegal.
C) cannot offer discounts.
D) cannot control the price of its product.
E) makes a smaller economic profit than it would if it were a single-price monopoly.

Question

Quizplus · Accepted Answer

A price-discriminating monopoly can sell to different groups of customers at different prices, which would increase the overall quantity sold and maximize profit. By charging a lower price to price-sensitive customers, the monopoly can attract more customers and increase its overall sales. Therefore, a price-discriminating monopoly sells a larger quantity than it would if it were a single-price monopoly.

A Price-Discriminating Monopoly