Advertisements
Advertisements
Question
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.
Options
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
Advertisements
Solution
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
APPEARS IN
RELATED QUESTIONS
Following is the feature of perfect competition:
The seller in a monopoly market is a price maker.
Mention two features of monopoly.
Identify the market form of the following:
Goods sold are homogeneous.
Identify the market form of the following:
Market for toilet soaps in India.
Identify the market form for the following:
Telecom industry in India.
Which type of market structure is the following? Give reason.
Trucks
Which type of market structure is the following? Give reason.
Soft drinks
Name the characteristic which makes monopolistic competition different from perfect competition.
Why are selling costs incurred?
