Multiple Choice QuestionMarket segregation must exist in order for a monopolist to Blank______.Multiple choice question.prevent entry of new firmsbe a natural monopolyprice discriminateimprove technologies
Question
Multiple Choice QuestionMarket segregation must exist in order for a monopolist to Blank______.Multiple choice question.prevent entry of new firmsbe a natural monopolyprice discriminateimprove technologies
Solution
The correct answer is "price discriminate".
Market segregation is a necessary condition for a monopolist to price discriminate. Price discrimination is a strategy where a firm charges different prices to different groups of consumers for an identical good or service. For this to be possible, the firm must be able to separate or segregate the market into different groups based on their willingness to pay.
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