When a monopolist practises price discrimination as opposed to setting a single price,the monopolist sells more and increases profits.

Question

Quizplus · Accepted Answer

This is true. Price discrimination allows the monopolist to charge higher prices to customers with a higher willingness to pay and lower prices to customers with a lower willingness to pay. By doing this, the monopolist can sell more units overall and increase profits.

When a Monopolist Practises Price Discrimination as Opposed to Setting