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Question
Elaborate the price discrimination feature of monopoly.
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Solution
- Price discrimination is a situation when the monopolist charges different prices of the commodity from its different consumers.
- Monopolist, being the only seller in the market, can exercise this feature by charging different prices for the same product from different consumers.
- Example: The electricity distribution companies might charge different prices from its domestic and commercial users.
RELATED QUESTIONS
Following is the feature of perfect competition:
A monopolist is price maker:
"The price of a product under perfect competition is determined by an individual seller."
Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?
Which of the following statements are true?
- Monopolistically competitive markets have high selling costs.
- Monopolistically competitive markets sell homogeneous goods.
- Any firm can start a business in a monopolistically competitive market.
Products sold by each firm in a perfectly competitive market are perfect substitutes of each other.
The market structure which is characterised by a single producer of a commodity and when there are not close substitutes for that commodity:
Which of the following is the least competitive market?
Match the following:
| Column I | Column II | ||
| A. | Monopoly | (i) | Availability of close substitutes |
| B. | Oligopoly | (ii) | Absence of close substitutes |
| C. | Perfect competition | (iii) | Few large sellers |
| D. | Monopolistic competition | (iv) | Homogeneous products |
Match the following:
| Column I | Column II | ||
| A. | Demand curve under perfect competition | (i) | Indeterminate demand curve |
| B. | Demand curve under monopoly | (ii) | Downward sloping but less elastic |
| C. | Demand curve under monopolistic competition | (iii) | Horizontal straight line |
| D. | Demand curve under oligopoly | (iv) | Elastic demand curve |
Give an example of oligopoly.
What are selling costs?
Identify the market form for the following:
Telecom industry in India.
Identify the market form for the item given below:
A single seller
Identify the market form for the item given below:
Product differentiation
Define monopoly.
Explain the main characteristics of a monopoly.
Give two examples of a monopolistically competitive market.
Identify the market form from the following.
Price discrimination
Identify the market form from the following.
Perfect knowledge
