Other things equal, in which of the following cases would economic profit be the greatest?
A)an unregulated monopolist that is able to engage in price discrimination
B)an unregulated, nondiscriminating monopolist
C)a regulated monopolist charging a price equal to average total cost
D)a regulated monopolist charging a price equal to marginal cost

Question

Quizplus · Accepted Answer

An unregulated monopolist that can engage in price discrimination can capture more consumer surplus by charging different prices to different consumers based on their willingness to pay, leading to greater economic profit compared to other scenarios listed.

Other Things Equal, in Which of the Following Cases Would