When a monopolist is able to sell its product at different prices, it is engaging in
A)distribution pricing.
B)quality-adjusted pricing.
C)arbitrage.
D)price discrimination.

Question

Quizplus · Accepted Answer

When a monopolist sells its product at different prices to different individuals or groups of individuals, it is engaging in price discrimination. This is done in order to maximize their profits by charging higher prices to those who are willing to pay more and lower prices to those who are not. This would not be possible in a perfectly competitive market where the price is the same for all consumers.

When a Monopolist Is Able to Sell Its Product at Different