A monopolist who is able to practice third-degree price discrimination charges a higher price in the market that is more elastic.

Question

Quizplus · Accepted Answer

A monopolist who practices price discrimination charges different prices to different customers based on their willingness to pay, but they charge the same price in each market segment. Therefore, the monopolist does not charge a higher price in the market that is more elastic.

A Monopolist Who Is Able to Practice Third-Degree Price Discrimination