Which of the following can eliminate the inefficiency inherent in monopoly pricing?
A)Arbitrage
B)Cost-plus pricing
C)Price discrimination
D)Regulations that force monopolies to reduce their levels of output

Question

Quizplus · Accepted Answer

Price discrimination can eliminate inefficiency by allowing a monopoly to charge different prices to different consumers based on their willingness to pay, thus capturing more consumer surplus and reducing deadweight loss.

Which of the Following Can Eliminate the Inefficiency Inherent in Monopoly