Since monopolists that practice price discrimination generally increase market output, compared to a monopoly that charges a single price, practicing price discrimination generally leads to a smaller deadweight loss.

Question

​Since monopolists that practice price discrimination generally increase market output, compared to a monopoly that charges a single price, practicing price discrimination generally leads to a smaller deadweight loss.

Quizplus · Accepted Answer

Price discrimination allows monopolists to sell additional units to consumers with lower willingness to pay, increasing total output and reducing the inefficiency (deadweight loss) associated with monopoly pricing.

​Since Monopolists That Practice Price Discrimination Generally Increase Market Output

Since Monopolists That Practice Price Discrimination Generally Increase Market Output