When a monopolist sells the same product at different prices and the prices are related to cost differences, we have
A) monopoly pricing.
B) marginal cost pricing.
C) price discrimination.
D) price differentiation.

Question

Quizplus · Accepted Answer

Price differentiation occurs when a monopolist sells the same product at different prices, and these price differences are related to cost differences. This is distinct from price discrimination, where price differences are not necessarily related to cost differences but rather to differences in demand or willingness to pay among different groups of consumers.

When a Monopolist Sells the Same Product at Different Prices