Question

Elaborate the price discrimination feature of monopoly.

Answer 1

Price discrimination happens when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated with costs of supply.

Answer 2

In a monopoly scenario, for a product there is one seller who controls pricing, demand, as well as supply, related decisions.

Price discrimination is a typical feature of a monopoly as the single seller sets the prices or varies it for different customers in order to have a maximized profit.

Charging varied charges for a single product or similar pricing for varied products is what is known as price discrimination a monopoly.