Question

Under which of the market forms can the firm charge different prices from different sets of consumers for reasons not associated with difference in the cost of supplying the product to different consumers?

Options

• Monopoly

• Perfect competition

• Oligopoly

• Monopolistic competition

Answer 1

Monopoly

Explanation:

A monopoly can engage in price discrimination, where it charges different prices to different consumers, not based on the cost of supply but on other factors, such as willingness to pay.