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Assuming the same cost and demand data, which of the following statements regarding monopolies is true?

A

A non-discriminating monopoly will earn greater profits than a discriminating monopolist because it charges all consumers the same price.

B

A discriminating monopolist earns greater profits than a non-discriminating monopolist because it produces a higher output.

C

A non-discriminating monopoly earns greater profits than a discriminating monopolist because it produces a smaller output.

D

A discriminating monopolist earns greater profits than a non-discriminating monopolist because when it lowers its price to increase sales, it does not sacrifice revenue on previous units.

E

Discriminating and non-discriminating monopolists earn the same profits when they have the same cost and demand data.

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