Which of the following conditions will allow a monopolist to charge different prices in different markets?
A)Having the ability to prevent resale of its product
B)Incurring a constant marginal cost of producing output
C)Catering to a different number of consumers in each market
D)Facing a positively sloped marginal revenue curve

Question

Quizplus · Accepted Answer

The ability to prevent resale of its product is crucial for a monopolist to charge different prices in different markets, a practice known as price discrimination. This prevents consumers in a market with a lower price from reselling the product in a market with a higher price, thus maintaining the price difference.

Which of the Following Conditions Will Allow a Monopolist to Charge