Asked by Shelby Watson on Jun 01, 2024
Verified
A monopolist who is able to practice third-degree price discrimination charges a higher price in the market that is more elastic.
Third-Degree Price Discrimination
A pricing strategy where a seller charges different prices to different groups of consumers for the same product, based on varying demand elasticity.
More Elastic
Refers to the responsiveness of the quantity demanded or supplied of a good to changes in its price, with more elastic meaning more sensitive to price changes.
Monopolist
A single seller in a market who controls all the sales of a particular product or service, facing no competition.
- Comprehend how different market segments affect monopolist pricing strategies.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
False
Explanation :
A monopolist who practices price discrimination charges different prices to different customers based on their willingness to pay, but they charge the same price in each market segment. Therefore, the monopolist does not charge a higher price in the market that is more elastic.
Learning Objectives
- Comprehend how different market segments affect monopolist pricing strategies.