A monopolist would usually find more profitable to engage in block pricing rather than ordinary price discrimination. However, there are instances when this is not the case because:
A)the monopolist finds the block pricing hard to master.
B)customers buy usually a few units of the good.
C)it is costly to measure the customer's consumption.
D)customers loath discrimination.

Question

Quizplus · Accepted Answer

Block pricing becomes less profitable compared to ordinary price discrimination when it is costly to measure the customer's consumption, as this undermines the efficiency and effectiveness of implementing block pricing strategies.

A Monopolist Would Usually Find More Profitable to Engage in Block