Question

If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities, then

Answer 1

Step-by-step explanation:

Monopoly is the form of market in which the single market trading products and services are discussed and then the possibility of producing good economic profit is given. The monopoly is linked to the absence of a competitive scenario.

In large volumes, when the customer buys items, individuals are only impacted by the tiniest price fluctuation. Consumers who buy fewer amounts of items are, by contrast, subject to higher pricing as the smallest price changes do not much affect them. There is therefore increased demand price elasticity for customers who purchase bigger amounts of items.