Simple monopoly Simple monopoly &discriminating monopoly&discriminating monopoly

Simple monopoly is a market structure in which a Simple monopoly is a market structure in which a single firm selling a commodity or service by charging single firm selling a commodity or service by charging

a uniform price from all its buyers.a uniform price from all its buyers.Discrimination monopoly occures when different prices Discrimination monopoly occures when different prices

are charged for the same commodity in different are charged for the same commodity in different markets.markets.

Differences between simple Differences between simple monopoly & discriminating monopoly & discriminating monopolymonopoly• 1.Under simple monopoly there is same price for the similar product 1.Under simple monopoly there is same price for the similar product

in all market.in all market.• Under discriminating monopoly there is different price for the same Under discriminating monopoly there is different price for the same

product.product.• 2.profit under simple monopoly is less than the profit under 2.profit under simple monopoly is less than the profit under

discriminating monopoly.discriminating monopoly.• 3.under simple monopoly price elasticity of demand is zero .price 3.under simple monopoly price elasticity of demand is zero .price

discrimination would be profitable if & only if the price elasticity of discrimination would be profitable if & only if the price elasticity of demand is different in different market.demand is different in different market.

• 4.under simple monopoly there is no market segmentation. 4.under simple monopoly there is no market segmentation. discriminating monopoly is possible only when the market must be discriminating monopoly is possible only when the market must be clearly separable into two or more parts. clearly separable into two or more parts.

• 5.under simple monopoly resale of the product is possible .under 5.under simple monopoly resale of the product is possible .under discriminating monopoly no resale of the product must be possible.discriminating monopoly no resale of the product must be possible.