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

Author Question: Can a perfectly competitive firm successfully price discriminate? Hint: What does the demand curve ... (Read 158 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nmyers

  • Sr. Member
  • ****
  • Posts: 336
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

  • Member
  • Posts: 569
Reply 2 on: Jul 1, 2018
Excellent

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage The demand for oil can be reduced significantly with the introduction of new higher vehicle mileage
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
The Radioactive Decay Curve The Radioactive Decay Curve
Competitive firms and maximization Competitive firms and maximization
Saturation curve for hemoglobin of humans, llamas, and other mammals. Saturation curve for hemoglobin of humans, llamas, and other mammals.
Video: Body plan of euglena Animation

For a complete list of videos, visit our video library