Discussion Assignment: Monopolistic Pricing

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Price gouging refer to a situation whereby sellers raise the prices of their commodities or services to a higher level which is regarded as unfair or unreasonable. Hence, it results to exploitation of consumers. This practice raises ethical concerns such as consumers’ willingness to pay and whether or not the ability of consumers to pay should be factored in the spiked price.
Monopolistic pricing describes a situation where the seller sets the highest price possible that would enable them to maximize profits. This occurs under the assumption that the firm is a monopoly and thus does not face competition from other firms. The ethical concern in this case includes the effect that the monopoly price may have on potential rival firms and or retailers. It also raises concerns as to whether or not all consumers deserve the set price and or whether the monopoly should discriminate in favor or against some consumers.
Price fixing refers to a situation whereby rival firms make an illegal agreement not to sell goods or services below a certain price, which is the fixed price. This is achieved by controlling demand or supply in the market. This practice raises ethical concerns as to whether or not the consumers’ ability and or willingness to buy are fact...