A monopoly can price discriminate between two groups of consumers if each group has _______.
A) the ability to resell the good to the other group
B) a large consumer surplus
C) a different willingness to pay
D) the same willingness to pay

Question

Quizplus · Accepted Answer

Price discrimination is possible when different groups of consumers have a different willingness to pay for a good or service, allowing the monopolist to charge different prices to maximize profit.

A Monopoly Can Price Discriminate Between Two Groups of Consumers