When a monopolist is able to sell its product at different prices to different customers, what is it likely engaging in?
A) quality-adjusted pricing
B) illegal activities
C) price differentiation
D) price discrimination

Question

Quizplus · Accepted Answer

The act of selling the same product to different customers at different prices is known as price discrimination. This strategy is often used by monopolists to increase profits by charging higher prices to customers who are willing to pay more and lower prices to customers with lower willingness to pay. However, this practice is often considered illegal if it is based on a customer's race, gender, or other characteristics protected under antitrust laws.

When a Monopolist Is Able to Sell Its Product at Different