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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
Non-price competition is ______.
Selling costs are absent in perfect competition market.
'Homogeneous products' is a characteristic of ______.
Indian Oil Corporation Limited is an example of a/an ______.
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?
Pick the option which does not belong to the group.
Read the given statements carefully and select the correct option.
- The number of sellers under oligopoly are small.
- 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?
A holiday resort in a remote village is very popular among the tourists. Since the connectivity is very poor with the outer world, the owner employs the local villagers for the functioning of the resort.
This is a case of:
Define monopolistic competition.
Define oligopoly.
Identify the market form for the following:
Telecom industry in India.
State the market form of the following commodity.
Railways
State the market form of the following commodity.
Automobiles
What is the effect on price when a monopoly firm tries to sell more?
What is the difference between perfect and imperfect oligopoly?
Name the characteristic which makes monopolistic competition different from perfect competition.
Why are selling costs incurred?
Which of the following is an example of a perfectly competitive market?
