Price discrimination is possible in which of the following market structures?
a)perfect competition
b)monopoly
c)oligopoly
d)monopolistic competition
A)c and d only
B)b and c only
C)b, c, and d only
D)a, b, c, and d

Question

Quizplus · Accepted Answer

Price discrimination is only possible when the seller has market power to segment the market, and this is only possible in imperfectly competitive markets where sellers have some degree of control over price. Monopoly, oligopoly, and monopolistic competition are all imperfectly competitive markets where price discrimination can occur. Perfect competition, on the other hand, is characterized by a large number of small firms selling identical products at a market-determined price, and there is no scope for price discrimination in such a market.

Price Discrimination Is Possible in Which of the Following Market