This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What are the characteristics of a market that allow a monopolist to successfully price discriminate ... (Read 95 times)

urbanoutfitters

  • Hero Member
  • *****
  • Posts: 530
on: Jun 29, 2018
What are the characteristics of a market that allow a monopolist to successfully price discriminate between groups?
 
  What will be an ideal response?

Question 2

What is price discrimination? Can a perfectly competitive firm price discriminate? Explain you answer.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

snackralk

  • Sr. Member
  • ****
  • Posts: 363
Reply #1 on: Jun 29, 2018
Answer to Question 1

A monopolist can price discriminate between groups when the groups are easily identifiable, can be separated, have different average willingness to pay for the good, and when the good or service cannot be resold.

Answer to Question 2

Price discrimination is the practice of selling different units of a good or service for different prices. A perfectly competitive firm cannot influence the price of its productit is a price taker. So a perfectly competitive firm cannot price discriminate.


urbanoutfitters

  • Member
  • Posts: 530
Reply 2 on: Jun 29, 2018
Excellent

hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Multiple experimental evidences have confirmed that at the molecular level, cancer is caused by lesions in cellular DNA.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Norway lobsters on sale at a Spanish market Norway lobsters on sale at a Spanish market
Effect of Perceived Price of a Drug on Placebo Analgesia Effect of Perceived Price of a Drug on Placebo Analgesia
Principal Characteristics of REM and Slow-Wave Sleep Principal Characteristics of REM and Slow-Wave Sleep
Family interactions change in response to the developing child, and parenting characteristics, such ... Family interactions change in response to the developing child, and parenting characteristics, such ...
Price of Computers, 1982–2010 Price of Computers, 1982–2010
General Characteristics of Nervous Tissue General Characteristics of Nervous Tissue
Video: Brief Summary on Photosynthesis - Animation

For a complete list of videos, visit our video library