Condition to sell customers in a single- price monopolist and a price-discriminating monopolist.

Question

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Answer 1

Question

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

a)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

b)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

c)

To determine

Price charged by discriminating monopolists in a different market.

c)

Expert Solution

Answer to Problem 1CYU

True.

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.

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Answer 2

Question

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

a)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

b)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

c)

To determine

Price charged by discriminating monopolists in a different market.

c)

Expert Solution

Answer to Problem 1CYU

True.

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.

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Answer 3

Question

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

a)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

b)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

c)

To determine

Price charged by discriminating monopolists in a different market.

c)

Expert Solution

Answer to Problem 1CYU

True.

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.

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Answer 4

Question

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

a)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

b)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

c)

To determine

Price charged by discriminating monopolists in a different market.

c)

Expert Solution

Answer to Problem 1CYU

True.

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.

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Answer 5

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

a)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

b)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

c)

To determine

Price charged by discriminating monopolists in a different market.

c)

Expert Solution

Answer to Problem 1CYU

True.

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.

Answer 6

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

a)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

Answer 7

Chapter 63, Problem 1CYU

a)

To determine

Condition to sell customers in a single-price monopolist and a price-discriminating monopolist.

Answer 8

a)

Expert Solution

Answer to Problem 1CYU

False.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Since price discrimination monopolist charge according to the willingness to pay of customers and a single price monopolist charge a high uniform price irrespective of willingness to pay so in case of price decimating monopoly, the customer finds good at an affordable price. Hence, the given statement is false.

Answer 13

Economics Concept Introduction

When monopolists sell the same good to a different customer for different prices then it is called price discrimination. And in single price discrimination, monopolists charge a high uniform price from every customer for the same good.

Answer 14

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

b)

Expert Solution

Answer to Problem 1CYU

False.

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

Answer 15

b)

To determine

Efficiency comparison between a price discriminating monopolist and a sing price monopolist.

Answer 16

b)

Expert Solution

Answer to Problem 1CYU

False.

Answer 17

b)

Expert Solution

Answer 18

b)

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Since a single-price monopolist charges a high uniform price which excludes more customers due to unaffordability, and a price-discriminating monopolist charges different prices with respect to affordability so a price-discriminating monopolist serves larger output than a single-price discriminating monopolist. Hence, there is inefficiency in a single-price monopolist. Thus, the given statement is false.

Answer 21

Economics Concept Introduction

When monopolists sell the same good to a different customer for a different price then it is called price discrimination. And in single-price discrimination, monopolists charge a high uniform price from every customer for the same good. A price-discriminating monopolist covers a larger section of society than a single-price monopolist.

Answer 22

c)

To determine

Price charged by discriminating monopolists in a different market.

c)

Expert Solution

Answer to Problem 1CYU

True.

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.

Answer 23

c)

To determine

Price charged by discriminating monopolists in a different market.

Answer 24

c)

Expert Solution

Answer to Problem 1CYU

True.

Answer 25

c)

Expert Solution

Answer 26

c)

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

In price discriminating monopoly, a low price will be charged in the market having high price elasticity of demand because demand is greater responsiveness to changes in price which mean a slight price increase will result in a greater fall in demand which will reduce the profit of the monopolist that make monopolist charge a low price. Hence, the given statement is true enter in the market.

Answer 29

Economics Concept Introduction

Price discrimination monopolist charges a different price for the same good from a different group of consumers according to the willingness to pay of customers. In a price-discriminating monopoly, the firm charges a different price in a different market with respect to the elasticity of demand.