When a Monopoly Practices Price Discrimination

question 82

Multiple Choice

When a monopoly practices price discrimination

• A)it charges different prices to different consumers and transfers some of the consumer surplus to economic profit.
• B)it produces a smaller quantity than when it is a single-price monopoly which decreases consumer surplus.
• C)new firms enter the industry,so buyers have more goods from which to choose and consumer surplus increases.
• D)consumer surplus increases because the monopoly increases the quantity available for sale.
• E)firms exit the industry and consumer surplus decreases.

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Definitions:

Harry Harlow

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