A monopolist's profits with price discrimination will be
A)lower than if the firm charged a single, profit-maximizing price.
B)the same as if the firm charged a single, profit-maximizing price.
C)higher than if the firm charged just one price because the firm will capture more consumer surplus.
D)higher than if the firm charged a single price because the costs of selling the good will be lower.

Question

Quizplus · Accepted Answer

Price discrimination allows a monopolist to capture more consumer surplus by charging different prices to different consumers based on their willingness to pay, leading to higher profits compared to charging a single price.

A Monopolist's Profits with Price Discrimination Will Be