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Author Question: Can a perfectly competitive firm successfully price discriminate? Hint: What does the demand curve ... (Read 156 times)

jasdeep_brar

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on: Jul 1, 2018
Can a perfectly competitive firm successfully price discriminate? Hint: What does the demand curve look like for a perfectly competitive firm?
 
  What will be an ideal response?

Question 2

If the demand curve is given by Q = a + bp, then b is
 
  A) positive.
  B) the quantity demanded when price is zero.
  C) the change in quantity demanded if price changes by 1.
  D) different at different points on the demand curve.


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nmyers

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Reply #1 on: Jul 1, 2018
Answer to Question 1

No, the demand curve for a perfectly competitive firm is perfectly elastic, and therefore no units are valued more or less than the others.

Answer to Question 2

C


jasdeep_brar

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

jamesnevil303

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Reply 3 on: Yesterday
Excellent

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