Price discrimination is possible
A)Under any market form
B)Only under monopoly
C)Only under monopolistic competition
D)Only in perfect competition

Question

Quizplus · Accepted Answer

Price discrimination is primarily associated with monopoly markets because monopolists have the market power to segment the market and charge different prices to different consumers based on their willingness to pay. In perfect competition, firms are price takers and cannot influence prices, making price discrimination impossible. Monopolistic competition may allow for some degree of product differentiation but does not typically enable the clear-cut price discrimination seen in monopolies.

Price Discrimination Is Possible