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If Harding could practice first-degree
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- What are ways in which a monopolist can engage in price discrimination?In terms of reality, could you show that it is easier for a firm to practice second-degree price discrimination than it is for a firm to practice first-degree price discrimination? If you can use a graph, that would help me understand thank you.Define first, second, and third degree price discrimination and give one example for each. Which of these types of price discrimination would the monopolist prefer? Why?
- Suppose the local electrical company, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices? Why?Why would a healthcare manager ever want to price discriminate?First degree price discrimination is inefficient because the monopolist will extract the entire consumer surplus. True or False?
- Explain the first degree of the price discrimination in the economy?Student pricing at the movie theater is a common example of third degree price discrimination. What is it about students, as compared to everyone else, that makes movie theaters want or need to charge them a lower price? Why is it important for movie theaters to make students show their IDs? Additionally, suppose a student could buy as many tickets as they wanted with their ID. How might that limit the theater’s ability to charge two drastically different prices for students and non-students?Explain how price discrimination increases profit.
- If a natural monopolist practices perfect price discrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? Explain with a diagram.What are the key conditions that must be present for a firm to successfully price discriminate? What are two different examples of price discrimination being practiced today?In terms of perfect first-degree price discrimination, could you show that the firm's price of the last unit sold would equal the marginal cost of producing that unit and that the firm would produce the perfectly competitive level of output? If you can use a graph, that would help me understand thank you.
