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

Question

Quizplus · Accepted Answer

When a monopolist practices price discrimination, they can charge different prices for the same product to different consumers. This allows the monopolist to increase profits by extracting more consumer surplus. Therefore, compared to a single-price monopolist, a monopolist practicing price discrimination will have higher profits, and they will increase.

When a Monopolist Practices Price Discrimination,compared with a Single-Price Monopolist,monopoly