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Question
In which type of market price discrimination is practiced? Explain with an example.
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Solution
Price discrimination is practiced in a monopoly market, where a single seller charges different prices to different consumers for the exact same product to maximize profits.
Examples: Railway or Airline ticket pricing
RELATED QUESTIONS
“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:
- What is the type of market referred to?
- State and draw the type of demand curve faced by the market above.
- Differentiate between the market indicated above and monopoly on the basis of:
- No. of sellers
- Market price
- Entry and exit of firms in the market
Indian Oil Corporation Limited is an example of a/an ______.
Which of the following market types has the fewest number of firms?
In which form of market is the seller a price taker? Justify your answer.
Identify the market form of the following:
Goods sold are homogeneous.
Identify the market form for the following:
Perfectly elastic demand.
Which type of market structure is the following? Give reason.
Trucks
Product differentiation is practised in monopolistic competition? Give reasons.
Why can a monopolist charge different prices in different markets?
Identify the market form from the following.
Firm is a price maker.
