Question on: JAMB Economics - 2012
A discriminatory monopoly is characterized by
A
a common elasticity in different markets
B
different elasticities in different markets
C
a finite elasticity in all markets
D
zero elasticity in all markets
Ask EduPadi AI for a detailed answer
Correct Option: A
A discriminatory monopoly involves charging different prices to different groups of consumers. This practice is viable when the monopolist can segment its market and when the price elasticity of demand differs across those segments. Therefore, the key characteristic is different elasticities in different markets.
Add your answer
Please share this, thanks!
No responses