When a monopolist is able to sell its product at different prices to different customers, it is likely engaging in:
A)quality-adjusted pricing.
B)price discrimination.
C)price differentiation.
D)illegal activities.
E)None of the above.

Question

Quizplus · Accepted Answer

Price discrimination is the practice of charging different prices to different customers for the same product or service, and it is a common strategy used by monopolists. By identifying customers who are willing to pay a higher price and charging them more, the monopolist can increase its profits. This can be done through various methods such as quantity discounts, location-based pricing, or demographic-based pricing. Quality-adjusted pricing and price differentiation are not commonly used terms in economics, and illegal activities would not be a valid choice as it is not specific enough.

When a Monopolist Is Able to Sell Its Product at Different