Economics Oligopoly Questions
Price discrimination in oligopoly refers to the practice of charging different prices to different customers or markets for the same product or service. Oligopoly refers to a market structure where a few large firms dominate the industry. These firms have the ability to set prices and control the market. Price discrimination allows oligopolistic firms to maximize their profits by charging higher prices to customers with a higher willingness to pay and lower prices to customers with a lower willingness to pay. This strategy helps the firms capture a larger share of the market and increase their overall revenue.