Compared to the monopoly outcome with a single price, imperfect price discrimination
(i)sometimes raises total surplus.
(ii)sometimes lowers total surplus.
(iii)always leads to a lower quantity of output.
A)(i) and (ii) only
B)(ii) and (iii) only
C)(i) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

Imperfect price discrimination can sometimes raise total surplus by capturing more consumer surplus and converting it into producer surplus, but it can also lower total surplus if it leads to inefficiencies. However, it does not always lead to a lower quantity of output; in some cases, it can increase output compared to a single-price monopoly.

Compared to the Monopoly Outcome with a Single Price, Imperfect