When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have
A) monopoly pricing.
B) marginal cost pricing.
C) price discrimination.
D) price differentiation.

Question

Quizplus · Accepted Answer

When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have price discrimination. This allows the monopolist to capture more consumer surplus and increase their profits. The different prices are often based on factors such as willingness to pay, geographic location, or quantity purchased.

When a Monopolist Sells the Same Product at Different Prices