How does price discrimination apply to monopolies?

1 Answer
Aug 16, 2015

Monopolist is a single producer.


He is a single producer of a good for which there is no substitute in the market. Then the producer can go for price discrimination. He can charge different prices form different markets provided there is no seepage between the markets. He will charge a high price in a market where demand for his product is relatively inelastic and vice versa.