When a monopolist practices price discrimination, compared to a single-price monopolist, deadweight loss will:
A) remain the same.
B) increase.
C) decrease.
D) increase initially, and then return to its original level.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopolist to capture more consumer surplus, potentially reducing deadweight loss by producing a quantity closer to the socially optimal level.

When a Monopolist Practices Price Discrimination, Compared to a Single-Price