Question

Why do monopolists engage in price discrimination?
A. They want to lower production costs.
O
B. They want to increase the amount they produce.
O
C
. They want to maximize their profits.
D. They want to help senior citizens.

Answer 1

Answer:

C

Explanation:

Because In monopoly, there is a single seller of a product called monopolist. The monopolist has control over pricing, demand, and supply decisions, thus, sets prices in a way, so that maximum profit can be earned.

The monopolist often charges different prices from different consumers for the same product. This practice of charging different prices for identical product is called price discrimination.