Question

How does the monopolist determine price under third degree price discrimination?

Answer 1

Monopolistic is characterized as man industry in which many firms offer product or service that are similar but not perfect substitute

Third degree price discrimination occurs when a company charges different price to customers for example movie place charging different prices to consumer but they are seeing same movie

Monopolistic can determine price through

1.Age- charging different prices according to different age for instance adults pay more than children

2.sex- charging price according to sex either male or female

3.location- charging according to the location where someone is travelling to this implies in airlines

4.Economic status-rich people are cherged differently from the poor.people with money are given high class seats while others are given low class