Q345
Discriminating monopoly is possible if two markets have
A.
Rising cost curves
B.
Rising and declining cost curves
C.
Different elasticity of demand
AnswerD.
Equal elasticity of demand
Answer: Option C
Solution
Answer: Option C
Solution:
Discriminating monopoly is possible if two markets have different elasticity of demand. Price discrimination is possible only when the buyers from different sub-markets are willing to purchase the same product at different prices. If the elasticity of demand is the same, then the effect of the price change on the buyer will be identical too.