+3 votes
in Class 12 by kratos

Why can a monopolist charge different prices in different markets?

1 Answer

+5 votes
by kratos
 
Best answer

There is a single seller of a product called monopolist. The monopolist has control over pricing, demand, and supply decisions, thus, sets prices in a way, so that maximum profit can be earned. The monopolist often charges different prices from different consumers for the same product. This practice of charging different prices for identical product is called price discrimination and this practice is to gain market advantage or to capture market position.

...