Explain price discrimination-demand-monopoly

Reference no: EM13174429

Graph long-run equilibrium to include MC, AC, D, and MR to answers for questions 1 through 4:

1. Perfect competition

2. industry entry and exit to be relatively easy:

3. Monopolistic competition

4. Products which are identical

1. (a) Draw a simple demand curve and a simple supply curve. Label each curve and each axis. Identify the area that represents consumer surplus. Identify the area that represents producer surplus.

(b) Describe briefly in words how a price floor can cause a "deadweight loss".

(c) Define 'price discrimination' and list the three conditions that must be met for a firm to successfully practice price discrimination.

2.(a) Write in words (or in mathematical symbols) the formula for the coefficient of price elasticity of demand.

(b) What are the numbers or ranges of numbers that correspond to (1) perfectly elastic demand; (2) elastic demand?

(d) Write in words (or in mathematical symbols) the formula for the coefficient of cross elasticity of demand.

(e) Is the coefficient of cross elasticity of demand of a pair of complementary goods 'positive', 'zero', or 'negative'? (Answer with one word.)

3.(a) Define (1)cartel; (2) natural monopoly.

(b) Define: (1) rent seeking; (2)the principle of diminishing returns.

(c) Define '4-firm concentration ratio' and give one real-world example of an industry with a high 4-firm concentration ratio.

Reference no: EM13174429

Questions Cloud

State how many moles of iron were converted : the mass loss of the iron nail was 1.511. How many moles of iron were converted to Fe3+?

State the experiment at an atmospheric pressure : The 1.000 L flask was filled with gas from the experiment at an atmospheric pressure of 30.57 inches of Hg and a temperature of 24 degrees C.

State what is one of the usual products : when an acid reacts with a metal, what is one of the usual products? a) carbon dioxide

State the refrigeration unit uses a compressor : We have a refrigeration unit that works at a pressure of 0.1MPain the evaporator and 1 MPa in the condenser. The refrigeration unit uses a compressor with an efficiency of 90%

Explain price discrimination-demand-monopoly : Write in words (or in mathematical symbols) the formula for the coefficient of price elasticity of demand. What are the numbers or ranges of numbers that correspond to (1) perfectly elastic demand; (2) elastic demand? Give a realistic example o..

State the soluton after addition of solid sodium formate : Calculate the pH for the soluton after addition of solid sodium formate to cause the formate ion (CHOO-) to increase to 0.2 M

Calcium hydride reacts with water to give gaseous hydrogen : Calcium hydride reacts with water to give gaseous hydrogen and calcium hydroxide

How the supply and demand increases or decreases? : All of the questions in this Part refer to the market for gasoline. All questions are concerned only with the short run. Each situation is not related to the others. Analyze each question separately. Huge new crude oil reserves are discovered in th..

State how many joules of heat are produced for each electron : how many joules of heat are produced for each electron? c. If the circuit operates for thirty mins, how many mles of electrons will have flowed through the resistor?

User Account

All Pages