What are the characteristics of a market that allow a monopolist to successfully price discriminate between groups?
What will be an ideal response?
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.
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Milky Moo and Mega Cow are the only sellers of milk. Milky Moo's supply function is QsMMoo = 12P - 6 at prices above $0.50 and zero at prices below $0.50. Mega Cow's supply function is QsMCow = 9P - 3 at prices above $0.33 and zero at prices below $0.33. At a price of $2.00:
A. the market supply of milk is 33 units. B. the market supply of milk is 15 units. C. the market supply of milk is 18 units. D. the market supply of milk is 42 units.
The national debt
a. exists because of past government budget deficits b. is the difference between the government's spending and revenue in a given year c. is the amount households owe on credit cards, mortgages and other loans d. is a flow variable e. is the same as the government's budget deficit
It is generally easier to prevent deforestation than fishery collapse because:
A. it is easier to establish and enforce property rights on national lands than in international waters. B. there is greater incentive to have sustainable forests than sustainable fisheries. C. the demand for wood products has dropped significantly while the demand for fish has grown significantly.
If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost. B. price is greater than marginal cost. C. price is equal to average variable cost. D. price is greater than marginal revenue.