Thus as larger output will be obtained


Thus the monopolist would not like to serve or produce the commodity. As a consequence the society as a whole would be devoid of these services or commodities. But when price discrimination is practiced the monopolist would charge less from poor and more from rich. Though it is a discrimination against the rich, but the poor will be benefited from the sale of such a service or commodity.

But when the monopolist charges high prices from the rich, the society has nothing to regret as it would increase the social welfare of the community. But in case of place or geographical discrimination the society may suffer if the monopolist is selling his commodity at lower price in the foreign markets at the cost of the home market where he sells at a higher price. This is certainly harmful to the society.

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However, if the commodity is being produced under the law of increasing returns (or diminishing costs) the society will gain as larger output will be obtained at a lower cost of production and this is likely to lower the price in the home market.

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