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JAMB Economics 1982 Question 33

Question 33

Market Structures

A commodity can be sold for two or more different prices if it is

  1. A.produced or sold by oligopoly
  2. B.sold in a perfect market
  3. C.produced or sold by monopsony
  4. D.produced or sold by monopoly
  5. E.produced or sold by perfect competition.
Show the answer and explanation

Answer: D (produced or sold by monopoly)

Explanation

A monopolist controls supply, so it can practise price discrimination by charging different prices in separate markets.