Question

under what conditions is it profitable for a monopolistic firm to practice price discrimination?

Answer 1

The following two conditions must be met for price discrimination to be profitable
for a monopolist.
1) The price elasticity of demand should be different for the different markets.
The price should be higher where the elasticity of demand is relatively lower.
The price should be lower where the elasticity of demand is relatively higher.
2) The marginal revenue for both markets should be the same.
The monopolist can transfer the number of products sold from the
market that has lower marginal revenue to the market with higher
marginal revenue.