What is price discrimination policy

Assignment Help Business Economics
Reference no: EM131388857

What is price discrimination and how is it used to increase a monopoly's profits? Explain with a graph, how consumer surplus changes when a monopoly price discriminates. Give me a real-world example where companies use price discrimination policy.

Reference no: EM131388857

Questions Cloud

Time-inconsistency problem : Describe the short run and long run equilibrium in a monopolistically competitive market. An open market purchase of securities will always cause the equilibrium Fed Funds rate to fall. The "time-inconsistency problem" is less likely to occur when th..
The marginal cost of producing strudel : Sally’s Strudel is a located in a small town that has no other strudel producers. Market research indicates that the weekly inverse demand for a strudel would be P=8-(1/50)Qd , where P is price and QD is quantity demanded. The marginal cost of produc..
Monopoly causes dead weight loss : We all know that monopoly causes dead weight loss; therefore monopoly means a loss for the society. Now, if a patent gives a firm monopoly power. why does the government give out patents? Explain.
What is the typical firm short-run supply curve : Suppose there are 2000 identical firms producing pumpkins in a perfectly competitive market and that the total cost curve for each firm is given by TC= (1/2q^2+5q+20.5) and MC = q+5. What is the typical firm's short-run supply curve? Derive and graph..
What is price discrimination policy : What is price discrimination and how is it used to increase a monopoly's profits? Explain with a graph, how consumer surplus changes when a monopoly price discriminates. Give me a real-world example where companies use price discrimination policy.
Holding the overall costs of production constant : Consider the following scenario: the firm estimates that currently, its marginal product of labor is 80, while the marginal product of capital is 160. The firm pays $40 in the rental price of capital and $15 in wage. Can this firm improve its profits..
What is the lerner index of monopoly power in each market : Assume that a seed company supplies GM seed to farmers in the US and farmers in Argentina and faces the following demands: DUS: PUS=80-2QUS and DAR: PAR=50-QAR where DUS is the demand in the US and DAR is the demand in Argentina. What is the Lerner I..
Personally liable for the overtime wages : Felix Santos, Carlos Garcia, and Jose A. Valdes Prieto were stock persons for Cuba Tropical, Inc., a supermarket supplier. They regularly worked over 40 hours per week, but they were not paid overtime. He was required to sign certain documents for th..
Net gain to free trade according to economic theory : It is no secret that China has a large trade surplus with the United States. Our open and large markets are very attractive to manufacturers all across the globe. Is it in the long run interest of the United States to maintain such trade deficits? Is..

Reviews

Write a Review

Business Economics Questions & Answers

  What historical events demonstrate various relationships

Following WWII, a rift emerged between the capitalist nations of the West and the communist nations of the East after World War II. In an attempt to orchestrate the economic and internal affairs of Eastern European communist nations, the Soviet Union..

  Learning curve applies to the labor required

Past experience has explain how that an 80% learning curve applies to the labor required for producing these units. The time to complete the first unit has been estimated to be 1.76 hours.

  In the two goods consumer demand setting

In the two goods consumer demand setting, an increase in one of the prices of a given level can have the same effect on the budget constraint as a given (maybe different) increase in income. A consumer who can borrow and lend at a constant interest r..

  Marginal product of labor equals

A firm is producing optimally (maximizing profits) when the price level = $1. It pays a wage rate of $10 per hour to labor and rents capital for $8 per hour. It sells its product for $20 per unit. At its current production point we can assume that it..

  Overall speedup by using the floating-point processor

You have a system that contains a special processor for doing floating- point operations. You have determined that 60% of your computations can use the floating-point processor. When a program uses the floating-point processor, the speedup of the flo..

  What are the factor markets like for the automobile industry

What are the factor markets like for the automobile industry? What global pressures does the automobile industry face? Foreign competition?

  Perfectly competitive industry is in long-run equilibrium

Suppose that a perfectly competitive industry is in long-run equilibrium, and demand increases. Explain the short run and long run effects on the firm and on the industry.

  She is considering major attributes that she considers

Roshima is researching universities where she could study for her MBA degree. She is considering 3 major attributes that she considers important in her choice

  Your insurance firm processes claims through its newer

Your insurance firm processes claims through its newer, larger high-tech facility and its older, smaller low-tech facility. Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs. Each ..

  The supply curve for fluorescent light bulbs

Which of the following would shift out (or shift down or shift right) the supply curve for fluorescent light bulbs?

  About an organization like the european union

In considering the international realm, let’s consider the concept of economic treaties. Specifically, let's think about an organization like the European Union (EU). Why was it formed? In addition, what are some of the objectives of the nations that..

  What is the minimized value of the function

Suppose that you want to maximize the value of the function f(x) = x^3-6x^2+9x, subject to 0 less than or equal x less than or equal 5. Which value(s) of x satisfy the first-order condition for this maximization problem? Which value(s) of x are bound..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd