Monopoly is always in an advantageous position to fix the price of a commodity in a way it likes another exploit the society. It is very essential that the society should be saved from exploitation. This can be done only when the state interferes and for this some measures are always taken by the state. Some of important measures are: [...]
The following points highlight the seven limitations of price-fixing power of a monopolist. The limitations are: 1. Potential Competition 2. Foreign Competitors 3. Existence of Substitutes 4. Fear of Public Agitation or Consumer’s Opposition 5. Government's Interference and Legislations 6. Time Elasticity and Future Expansion of the Business and few Others. Limitation # 1. Potential Competition: The monopolist may fear [...]
Get the answer of: Is Price Discrimination Socially Desirable? Price discrimination is beneficial to the poor buyers who can get the goods and services at relatively low prices. But it is not beneficial to the rich buyers who are compelled to pay higher prices for the same thing and so are deprived of the consumer's surplus which they might have [...]