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

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

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