Respuesta :
Compared to a monopolist that does not price discriminate, a price discriminator will produce an output that is (C) larger, capture more consumer surplus, and generate less deadweight loss in the market.
What is a price discriminator?
- Price discrimination is a microeconomic pricing technique in which the same provider sells the same or substantially similar items or services in different marketplaces at different prices.
- A selling tactic known as price discrimination involves charging clients various rates for the same good or service depending on what the vendor believes they can persuade the customer to accept.
- When a merchant uses pure price discrimination, they charge each consumer the highest price they will agree to.
- A price discriminator will have higher production, collect more consumer surplus, and cause less deadweight loss in the market than a monopolist that does not price discriminate.
Therefore, compared to a monopolist that does not price discriminate, a price discriminator will produce an output that is (C) larger, capture more consumer surplus, and generate less deadweight loss in the market.
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The correct question is given below:
Compared to a monopolist that does not price discriminate, a price discriminator will produce an output that is _____, capture _____ consumer surplus, and generate _____ deadweight loss in the market.
a) smaller; less; more
b) larger; more; more
c) larger; more; less
d) smaller; more; less
