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Oluwatosin Taiwo
on Oct 27, 2024

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When a monopolist practices price discrimination,the monopolist's profits will be lower than it is in a single-price monopoly.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on costs but on what the seller believes each customer can afford or is willing to pay.

Single-Price Monopoly

A market structure where a single seller sells a unique product in the market and does not charge different prices to different consumers for the same product.

Monopolist's Profits

The excess earnings a monopolist achieves by being the sole provider of a product or service, which allows for pricing above marginal cost.

  • Scrutinize the impact differential pricing has on the financial outcomes of a monopolist and on consumer surplus.
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simran pahariaOct 29, 2024
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