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What are the preconditions for successful price discrimination by a monopolist?
  • a)
    Perfect competition and unlimited resale of the product.
  • b)
    Monopoly and ability to resell the product.
  • c)
    No possibility of resale of the product and separation of markets.
  • d)
    High transportation costs and legal intervention.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What are the preconditions for successful price discrimination by a mo...
Price discrimination by a monopolist is possible under certain conditions. The preconditions for successful price discrimination are:No Possibility of Resale of Product: Price discrimination is successful when the product or service cannot be easily resold from low-priced to high-priced markets. This prevents arbitrage and is common in services like medical care, legal advice, and personal services.Separation of Markets: Markets should be separated geographically or politically, making it difficult for buyers and sellers to interact between markets. Dumping, where products are sold at different prices in different markets, is an example of this.These conditions, along with other factors like consumer peculiarities and different demand elasticities, enable a monopolist to engage in successful price discrimination.
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What are the preconditions for successful price discrimination by a monopolist?a)Perfect competition and unlimited resale of the product.b)Monopoly and ability to resell the product.c)No possibility of resale of the product and separation of markets.d)High transportation costs and legal intervention.Correct answer is option 'C'. Can you explain this answer?
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What are the preconditions for successful price discrimination by a monopolist?a)Perfect competition and unlimited resale of the product.b)Monopoly and ability to resell the product.c)No possibility of resale of the product and separation of markets.d)High transportation costs and legal intervention.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What are the preconditions for successful price discrimination by a monopolist?a)Perfect competition and unlimited resale of the product.b)Monopoly and ability to resell the product.c)No possibility of resale of the product and separation of markets.d)High transportation costs and legal intervention.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the preconditions for successful price discrimination by a monopolist?a)Perfect competition and unlimited resale of the product.b)Monopoly and ability to resell the product.c)No possibility of resale of the product and separation of markets.d)High transportation costs and legal intervention.Correct answer is option 'C'. Can you explain this answer?.
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