Question

Why can a price discriminating monopolist be both more profitable and more efficient (i.e., produce greater net benefits for society)? Group of answer choices Because it charges a lower price than a single price monopolist. Because it is more socially conscious than a single price monopolist. Because it supplies a higher quantity of output than a single price monopolist.

Answer 1

Answer: Because it supplies a higher quantity of output than a single price monopolist.

Step-by-step explanation:

In monopoly, there is a single producer or seller of a product and the seller is called the monopolist. A monopolist has control over the price and demand, and supply decisions, therefore setting price in a way that maximum profit can be gotten.

When the monopolist charges different prices from the consumers for the same product, it is called price discrimination. A price discrimination monopolist can be more efficient and profitable because a higher quantity of output is supplied than the monopolist who offers a single price.

Answer 2

The Correct answer is "Because it supplies a higher quantity of output than a single price monopolist"

Step-by-step explanation:

A cost segregating monopolist charges distinctive cost to various gathering of shoppers based on their capacity to pay, which empower it to create higher amount than a non-separating monopolist. Since it supplies a higher amount of yield than a solitary value monopolist.