QUESTION IMAGE
Question
multiple choice question
market segregation must exist in order for a monopolist to _______.
o improve technologies
o price discriminate
o be a natural monopoly
o prevent entry of new firms
Price discrimination occurs when a monopolist charges different prices to different consumers for the same good or service. Market segregation is necessary so that consumers in one segment cannot resell the product to consumers in another segment, which would undermine the price - discrimination strategy. Improving technologies, being a natural monopoly, and preventing new - firm entry do not directly rely on market segregation as a necessary condition.
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price discriminate