Ceteris paribus,in which of the following cases would we expect economic profits to be greatest?
A) an unregulated monopolist who is able to price discriminate.
B) an unregulated monopolist who is unable to price discriminate.
C) a regulated monopolist required to charge a price no greater than marginal cost.
D) a regulated monopolist required to charge a price no greater than average cost.

Question

Quizplus · Accepted Answer

An unregulated monopolist who is able to price discriminate will be able to charge different prices to different groups of consumers based on their willingness to pay. This allows the monopolist to capture more of the consumer surplus and increase economic profits.

Ceteris Paribus,in Which of the Following Cases Would We Expect