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Business Studies

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Price discrim...

Question

Price discrimination take place in a __________.

A

perfect competition

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B

monopoly

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C

monopolistic competition

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D

pure completion

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Solution

The correct option is C monopoly
A monopoly is a situation where there is only a single seller who sells products which are not close substitutes of each other. There is also a free entry and exit of firms. Owner also has a full control over the prices of the product. Price discrimination is nothing but the situation where there are different prices charged by the seller in different market. Hence, it takes place in a monopoly.

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Similar questions

Q. Give reasons or explain:

1. Single price prevails in perfect competition.

2. Price discrimination is possible under monopoly.

3. Selling cost is incurred by a firm in Monopolistic competition.

4. A monopolist can control the supply of goods.

5. Sellers and the buyers are price takers in perfect competition.

Q. State whether the following statement are TRUE and FALSE.

1. There is no price discrimination under Monopolistic competition.

2. In a monopoly market, firm and industry are the same.

3. Product differentiation is not possible under perfect competition.

4. Under perfect competition, price is determined by equilibrium of demand and supply.

Q. Fill in the blanks with appropriate alternatives given in the brackets:

1. Under perfect competition commodities are ________________ in nature. (homogeneous/ classified/ heterogeneous/ supplementary)

2. _____________ appears in a monopoly market. (product differentiation/ price discrimination/ individual differentiation/ packing differentiation)

3. The price at which demand and supply equate to each other is called _______ price. (general/ equilibrium/ short-run/ reserve)

4. In ________ market, seller creates products differentiation. (competition/ perfect/ pure/ monopolistic competition)

5. Monopolist means __________ competitive. (single seller/ several seller/ single buyer/ several buyer)

Q. A monopolist can exercise price discrimination.

Q. Which of the following type of competition is just a theoretical economic concept, not a realistic case where actual competition and trade take place?

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