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With the help of an example explain the meaning of price discrimination. - Economic Applications

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प्रश्न

With the help of an example explain the meaning of price discrimination. 

संक्षेप में उत्तर
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उत्तर

The act of selling the same product at different prices to different buyers is known as price discrimination. A monopolist can charge different prices from his different buyers easily. If a monopolist adopts a policy of price discrimination, the situation is called a discriminating monopoly.

Example: 

  1. Indian Railways charge lower fares from senior citizens of the country as compared to other citizens.
  2. Electricity boards sell electricity at cheaper rates for agricultural use than for domestic use.
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अध्याय 5: Nature and Structure of Markets - QUESTIONS [पृष्ठ १३९]

APPEARS IN

गोयल ब्रदर्स प्रकाशन Economic Applications [English] Class 10 ICSE
अध्याय 5 Nature and Structure of Markets
QUESTIONS | Q 10. i | पृष्ठ १३९
गोयल ब्रदर्स प्रकाशन Economics [English] Class 10 ICSE
अध्याय 5 Meaning and Types of Markets
Exercise | Q 13. (i) | पृष्ठ ११७

संबंधित प्रश्न

Define Discriminating Monopoly.


Match the following and select the correct option: 

  Column I   Column II
(i) Perfect competition (A) Differentiated Products
(ii) Monopoly (B) Few large firms
(iii) Monopolistic Competition (C) Single seller
(iv) Oligopoly (D) Homogeneous products

Indian Oil Corporation Limited is an example of a/an ______.


There is no difference between perfect competition and pure competition.


Match the following and select the correct option.

  Column I   Column II
(i) Perfectly elastic demand (A) Oligopoly
(ii) Less elastic demand (B) Monopolistic competition
(iii) More elastic demand (C) Perfect competition
(iv) Indeterminate demand (D) Monopoly

Which among the following is a feature of monopsony market?


The monopolist's downward sloping demand curve means that it can increase sales only by changing a lower price.


Read the given statements carefully and select the correct option.

  1. The number of sellers under oligopoly are small.
  2. In monopolistically competitive markets, buyers and sellers have perfect knowledge about the market conditions.

Which of the following market types has the fewest number of firms?


Read the following statements carefully and choose the correct alternative:

Assertion (A): Price discrimination is possible under monopoly.

Reason (R): A monopolist can charge different prices in different markets because different sets of consumers - rich and poor - have different price elasticity of demand for the monopolist's product.


Read the following statements carefully and choose the correct alternative:

Assertion (A): Buyers are ready to pay different prices for the product produced by different firms under perfect competition.

Reason (R): The products offered for sale in the perfect market are homogeneous.


Define monopsony.


Identify the market form for the following:

Railways in India.


Identify the market form for the item given below:

Product differentiation


To which market is price discrimination relevant?


What is the effect on price when a perfectly competitive firm tries to sell more?


Which feature best distinguishes monopolistic competition from perfect competition?


In which type of market are firms interdependent and a few large firms dominate?


Which statement correctly describes monopsony?


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