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

Question

Quizplus · Accepted Answer

Price discrimination occurs when a monopolist is able to charge different prices to different customers for the same product or service. This strategy allows the monopolist to increase their profits by charging higher prices to customers who are willing to pay more, and lower prices to customers who are less willing to pay. As long as the different pricing is not based on discriminatory factors such as race or gender, price discrimination is legal.

When a Monopolist Is Able to Sell Its Product at Different