Show the difference between a single price monopolist and a price discriminating monopolist. Do monopolists usually...

Show the difference between a single price monopolist and a price discriminating monopolist. Do monopolists usually price discriminate? Why or why not?

Expert Solution

Rahul Sunny answered 2 years ago

Monopolists are thought to be “price setters in markets. It is not possible for a monopolist...

Monopolists are thought to be “price setters in markets. It is not possible for a monopolist to loose money in the short run?

2. Why does a price-discriminating monopolist earn more profit than a monopolist who does not price-discriminate?...

2. Why does a price-discriminating monopolist earn more profit than a monopolist who does not price-discriminate? What must a monopolist do in order to successfully price discriminate? Give three real world examples of price discrimination practices.

Discuss how price discriminating monopolists stop products or services leaking from one market to another. Explain...

Discuss how price discriminating monopolists stop products or services leaking from one market to another. Explain why only normal profit may be earned in the long run in perfect competition

.A price-discriminating monopolist sells in two separate markets such that goods sold in one market are...

.A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges p1 = £4 in one market and p2 = £8 in the other market. At these prices, the price elasticity in the first market is –0.90 and the price elasticity in the second market is –1.30. Which of the following actions is sure to raise the monopolist’s profits? a. Raise p1. b. Raise p1 and lower p2....

Single-Price Monopoly: Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market...

Single-Price Monopoly: Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market demand curve: P = 120 − Q. The monopolist has constant marginal cost of $20 and zero fixed cost. (a) Determine the monopolist’s profit maximizing quantity, denoted QM, and profit-maximizing price, denoted PM. (b) Determine the quantity and price that would result in the market if this instead were a competitive market, denoted QC and PC, respectively. (c) Draw a picture of the market...

Suppose, at a given point in time, Chez Rachael is a non-price discriminating monopolist selling ratatouille...

Suppose, at a given point in time, Chez Rachael is a non-price discriminating monopolist selling ratatouille and is producing its profit-maximizing level of output. Suppose further that at this level of production, Rachael's average fixed cost of producing ratatouille is $2, her average total cost is $10, and her marginal cost is $12. At her current level of production, what is… a) Rachael’s average variable cost of producing ratatouille? b) Rachael’s marginal revenue from selling ratatouille? c) the price of...

SHOW HOW A FIRM CAN MAXIMIZE TOTAL REVENUE BY PRICE DISCRIMINATING

Suppose a first degree price discriminating monopolist has an inverse demand curve of P=100-2Q and a...

Suppose a first degree price discriminating monopolist has an inverse demand curve of P=100-2Q and a marginal cost curve of MC=10+4Q. Assume fixed costs are zero. What is the firm's maximum profit?

1.A single-price monopolist is a monopolist that sells each unit of its output for the same...

1.A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. At its profit-maximizing output level, the single-price monopolist produces where price is ___________ than marginal cost because for it price is __________ than marginal revenue and its demand curve lies __________ its marginal revenue curve. less; less; below greater; greater; above greater; greater; below less; less; above greater; less; below 2. Exhibit 2 Quantity Sold Price (units) Total Cost...

Explain the key similarities and differences between the Perfect Price Discriminating Monopoly market and the Simple...

Explain the key similarities and differences between the Perfect Price Discriminating Monopoly market and the Simple Monopoly market for (a) the producer; (b) the consumer and (c) the Social Welfare of economy? Construct graphs supporting your conclusions.

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