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

Question

Quizplus · Accepted Answer

Price discrimination occurs when a monopolist charges different prices to different customers for the same product or service, based on various factors such as willingness to pay, location, age, or gender. This allows the monopolist to maximize its profit by charging the highest possible price to customers who are willing to pay more, while still selling to customers who are not willing to pay as much at a lower price. Price differentiation, on the other hand, refers to the practice of charging different prices for different products or services, even if they are similar or related. Therefore, price discrimination is the best choice given the scenario described.

When a Monopolist Is Able to Sell Its Product at Different