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

Question

Quizplus · Accepted Answer

A monopoly can price discriminate between two groups of consumers if each group has a different willingness to pay. This is because the monopoly can charge a higher price to the group with a higher willingness to pay and a lower price to the group with a lower willingness to pay.

A Monopoly Can Price Discriminate Between Two Groups of Consumers