Advertisements
Advertisements
Question
Elaborate the price discrimination feature of monopoly.
Advertisements
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
The image above shows a departmental store of a market structure.
- Identify the form of market as observed from the above image.
- Discuss the features of this market form with respect to:
- Type of product
- Entry and exit of firms
- Selling cost
'A few big sellers' is a characteristic of ______.
Indian Oil Corporation Limited is an example of a/an ______.
The seller in a monopoly market is a price maker.
Identify the market form for seller A on the basis of the following information:
| Units of output sold | Price offered by seller A in ₹ |
| 30 | 10 |
| 40 | 10 |
| 50 | 10 |
Which one of the following is NOT found in a perfectly competition market?
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.
What is meant by pure competition?
Mention two features of monopoly.
What are selling costs?
Identify the market form for the item given below:
A single seller
Identify the market form for the item given below:
Homogeneous goods
What is the effect on price when a perfectly competitive firm tries to sell more?
What does perfectly elastic demand curve faced by a competitive firm indicate?
Mention one feature of a monopoly market.
Which of the following is an example of a perfectly competitive market?
In which market form is there a single seller and no close substitutes for the product?
Which feature best distinguishes monopolistic competition from perfect competition?
Which statement correctly describes monopsony?
