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Author Question: Which of the following is necessary for a monopolist to price discriminate between groups? A) The ... (Read 101 times)

tnt_battle

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on: Jun 29, 2018
Which of the following is necessary for a monopolist to price discriminate between groups?
 
  A) The groups are identifiable.
  B) The groups have different willingness to pay.
  C) A customer from one group cannot resell to a customer in another group.
  D) All of the above conditions are necessary for the monopolist to price discriminate.

Question 2

What is the principal-agent problem as applied to corporations?
 
  What will be an ideal response?


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angrybirds13579

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The principals are the owners of the corporation who want to see their profits maximized. The agents are the hired managers of the corporations who might serve their own goals instead. The principal-agent problem is to devise ways to make managers (the agents) act in the best interest of the owners (the principals).


tnt_battle

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Reply 2 on: Jun 29, 2018
Wow, this really help

Dnite

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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