Question

Give reason "Price discrimination is possible under monopoly".

Answer 1

Yes, the above statement is correct. This is because in a monopoly, there is only a single seller or a group of individuals owning a single firm. Being a single firm in the market, it has total freedom to fix the price level that maximises its profit. Therefore, it can be said that a monopoly firm is a price maker.✔✔

Answer 2

Answer:

Explanation:

Price discrimination is called the practice of charging different prices for the same product.

• There is a single seller of a product called a monopolist in monopoly. The monopolist regulates pricing, production, and supply decisions, thereby setting prices in a way that makes it possible to gain maximum profit. The monopolist always pays different prices for the same product from different customers.
• Monopoly price discrimination happens when a product is sold by a monopolist at more than one price and these price differences are not explained by differences in quality.