Answer to Question 1
The consumer surplus in a perfect competition is larger than the consumer surplus in a single-price monopoly. And, the consumer surplus in a single-price monopoly is larger than that with a price-discriminating monopoly. Indeed, for a monopoly able to perfectly price discriminate, there is no consumer surplus.
Answer to Question 2
Price discrimination helps businesses capture more consumer surplus and hence increase their economic profit. Basically the firm charges more to people who are willing to pay more. For a public college, out-of-state students will likely have a higher willingness to pay for attending that college because, by leaving their home state, they are demonstrating that they truly want to attend the college. If the college charged in-state residents the same tuition as out-of-state residents, the college would miss the chance to maximize revenue from each group. Charging in-state residents the same high price as out-of-state residents would lead to a massive drop in quantity demanded and thus lower total revenue. By separating their customers based on differing demand conditions, the college earns more total revenue.
amino acids with single and three code
Donor DNA is transferred as a single strand
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
A single overhead camshaft engine with a timing belt that also rotates the water pump.
A single cell from an early-stage human embryo
"The Department of Agriculture came out today with its prediction for food price