When the Egyptian and Jordanian governments engage in price discrimination against energy intensive industries these industries have no choice but to accept the status quo and pay the high price. This is because
A) the Egyptian and Jordanian governments have a complete natural monopoly in the electricity market.
B) they believe the price discrimination is fair.
C) energy intensive industries have high price elasticity of demand on energy.
D) energy intensive industries realize high profit and are willing to pay the high price.

Question

Quizplus · Accepted Answer

The Egyptian and Jordanian governments have a complete natural monopoly in the electricity market, meaning they are the sole providers of electricity in their respective countries. This gives them the power to set prices without competition, forcing energy-intensive industries to accept the prices they set.

When the Egyptian and Jordanian Governments Engage in Price Discrimination