Compared to setting a single price, if a firm can price discriminate it makes a lower economic profit has no change in its economic profit from when it set a single price makes a larger economic profit

Q: If the monopolist uses perfect price discrimination, what price will it charge?

A: A Monopolist is the only seller of a specific good in a market who has an opportunity to perform…

Q: a. b. If a firm's the price elasticity of demand (E) to be-3.5 and marginal cost (MC) is $15. Using…

A: The mark up refers to pricing where a firm charges fixed mark up over the marginal cost of…

Q: monopolist, as opposed to a company in a perfectly competitive market:

A: Perfect competition market ;- where large numbers of sellers and buyers exist and exchange…

Q: A monopolist has an inverse demand curve given by p(y) =12 − y and a cost curve given by c(y) = 3y.…

A: 1.  Marginal Revenue (MR):Marginal Revenue is the derivative of the total revenue function with…

Q: The figure below depicts the market demand curve a monopoly firm faces. If the monopoly firm…

A: First-degree price discrimination, also known as absolute price discrimination, occurs when a firm…

Q: To maximize its profit, a monopolist will ‏ a. raise output as long as marginal revenue exceeds…

A: If MR is less than MC, the firm incurs a marginal loss (= MC - MR), which can be minimized when firm…

Q: A monopolist is producing at a point at which marginal cost exceeds marginal revenue. How should it…

A: A monopolist is a firm or entity that is the sole seller or provider of a particular product or…

Q: nt for a monopoly?

A: Explanation: The equality of worth and price means the commodity's worth is adequate for the…

Q: Calculate the consumer surplus if the industry is a monopoly based on this diagram in the image?

A:

Q: How will a monopolist respond to a rise in fixed costs?

A: A monopoly is when a market is experiencing a situation where a single seller offers a specific…

Q: A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s)…

A: Perfect competition happens when all companies sell the same things, market share has no influence…

Q: 7. Market demand curve is Q(P)=10-P. There is a monopoly firm in the market with cost structure…

A: The monopoly market refers to market where single firm exists in the market. Firm has monopoly power…

Q: Describe how a monopolist will select the profit-maximizing level of output and price.  Use a graph…

A: Profit maximization is the point where the firm experience the highest revenues.

Q: 20 15 MC = ATC 10 D 10 20 MR

A: A market system in which a single vendor sells a one-of-a-kind commodity. The seller in a monopoly…

Q: Refer to the accompanying graph to answer the next six questions. Price MR D and H B and F A and H…

A: Under every given circumstance, the monopolist will experience a profit-maximizing condition where…

Q: How do you find the profit maximizing PRICE (not level of output) on a graph for a monopoly with…

A: Marginal revenue:Marginal revenue is the additional unit that is added to the total revenue. It is…

Q: Suppose the graph represent demand and marginal cost for a firm that is able to engage in perfect…

A: In a perfectly price discriminating market all the sellers have the knowledge regarding the consumer…

Q: In the long run a profit maximizing monopolist operates where   Long-run ATC is rising   Price is…

A: A Monopoly market is considered as special type of market because the behavior of the market…

Price Discrimination

Price discrimination or differential pricing is based on the principle that the seller will charge the buyer a price based on the buyer’s ability and willingness to pay for the product rather than applying uniform pricing for all.