Price discrimination by a monopolist is profitable and possible between two separate markets only when:

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Economics · Market Structure

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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The price elasticity of demand is different in both markets

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Answer 1

The elasticity of demand is identical in both markets

Answer 2

Arbitrage between the markets is easily possible

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Buyers can freely shift from one market to another

Answer 4

The price elasticity of demand is different in both markets

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