
Price and Output Determination Under Monopoly 53
PRICE DISCRIMINATION UNDER MONOPOLY
Price Discrimination
e theory of pricing under monopoly, as discussed earlier, gives the impression that once a monopolist
xes the price of its product, the same price will be charged from all the consumers. is is, however,
not the case generally. A monopolist, simply by virtue of its monopoly power, is capable of charging
dierent prices from dierent consumers or groups of consumers. When the same (or somewhat dier-
entiated) product is sold at dierent prices to dierent consumers, it is called price discrimination. When
a monopolist sells an identical ...