Question

Give two examples of price discrimination in a monopoly market.

Answer 1

• Railway Tickets: Railways often charge different fares for the same journey depending on the class of travel (e.g., first class, second class, sleeper, or general). The service is essentially the same transport from point A to point B, but the price varies by passenger category.
• Movie Theaters: Cinema halls charge lower ticket prices for children and senior citizens, while adults pay full fare, even though they all watch the same movie in the same theater.