Question

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

Answer 1

A. it charges different prices to different consumers and transfers some of the consumer surplus to economic profit

Step-by-step explanation:

In relation to price discrimination, monopolists charges the maximum price that prospective buyers that are willing to pay. It is basically extreme exploitation of consumers which results in failure of consumers to benefit any form of consumer surplus.