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 occurs when a firm charges different prices to different consumers for the same product or service, which allows the firm to capture more of the consumer surplus. This can be based on a variety of factors, such as age, income, location, or time of purchase, among others. Price discrimination is a common strategy used by monopolists to increase their profits.

When a Monopolist Sells the Same Product at Different Prices