A perfectly price discriminating monopolist would produce

2019-11-20 05:23

Discriminating Monopoly: A discriminating monopoly is a single entity that charges different prices, which are not associated with the cost to provide the product or service, for its products orC. Draw a graph illustrating the quantity the perfectly price discriminating monopolist will produce. Use a straightline demand curve, and include MC and ATC. On the graph fill in the economic profit of monopolist engaging in perfect price discrimination. (4 points) D. Suppose a monopolist can only charge a single price. On a new graph, illustrate the monopolist's profit, the consumer surplus a perfectly price discriminating monopolist would produce

Nov 12, 2009  Best Answer: A perfectly price discriminating monopolist can identify each individual buyer and charge each a different price to each. Each buyer of the goodservice effectively pays the maximum heshe is willing to for that goodservice. Work out

A perfectly pricediscriminating monopolist is able to maximize profit and produce a sociallyoptimal level of output. When a monopolist increases the number of units it sells, there are two effects on revenue. Thus the monopolist will produce the output y for which MC(y) is equal to P(y). That is, the optimal output of a perfectly discriminating monopolist is Pareto efficient! In this outcome the monopolist gets all the surplus, so unless the monopolist is needy the outcome is not likely to be equitablea perfectly price discriminating monopolist would produce A perfectly pricediscriminating monopolist is able to a. exercise illegal preferences regarding the race andor gender of its employees. b. maximize profit and produce a sociallyoptimal level of

A perfectly price discriminating monopolist would produce free

There is one important difference between the perfectly competitive firm and the perfectly pricediscriminating monopolist. Although both produce where P MC, the perfectly competitive firm charges the same price for each unit of the good it sells, and the perfectly pricediscriminating monopolist charges a different price for each unit it sells. a perfectly price discriminating monopolist would produce Price discrimination happens when a firm charges a different price to different groups of consumers for an identical good or service, for reasons not associated with costs of supply. What are the main aims of price discrimination? What is the difference between price discrimination and product ADVERTISEMENTS: Discriminating monopoly or price discrimination occurs when a monopolist charges the same buyer different prices for the different units of a commodity, even though these units are in fact homogeneous. Such a situation is described as perfectly discriminating monopoly. It is more usual, however, to find that a monopolist sells identical products to different 34. A perfectly pricediscriminating monopolist is able to a. maximize profit and produce a sociallyoptimal level of output. b. maximize profit, but not produce a sociallyoptimal level of output. c. produce a sociallyoptimal level of output, but not maximize profit. d. exercise illegal preferences regarding the race andor gender of its Practice Questions and Answers from Lesson III3: Monopoly. The following questions practice these skills: Explain the sources of market power. Apply the quantity and price affects on revenue of any movement along a demand curve. Find the profit maximizing quantity

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