Give two examples of price discrimination. In each case, explain why the monopolist chooses to follow this business strategy.

Q: A monopolist's cost structure is such that its total costs are TC = 300 + 200 Q + 3Q². The market…

A: profit maximizing point is where MR = MC , so here by using given information we calculate the…

Q: Refer to the above data for a monopolist. This firm will maximize its profit by producing:

A: Any monopolist will maximize profit where Marginal Revenue=Marginal Cost  So from Average Total…

Q: With the perfect price discrimination, the marginal revenue curve coincides with the demand curve.…

A: The monopoly is a market type which is characterized by a large number of buyers and a single…

Q: Output Total Total Total Marginal Marginal (Q) Price Revenue Cost Profit Revenue Cost 20 $25.00 $500…

A: Solution is given Below

Q: Explain whether regulating a monopolist by forcing it to charge a price equal to its marginal cost…

A: The monopolist generally produced to get maximum profits which he can get at the situation where…

Q: How does a monopolist determine its profit-maximizing level of output?  How does it determine the…

A: A monopoly market structure is that kind of market where there is one single seller and thus the…

Q: Refer to Figure 2 in Question 26. In order to maximize profits, the monopolist should charge what…

A: Profit maximizing price is such a price that corresponds to profit-maximizing quantity via the…

Q: How does a monopolist decide its production amount and pricing strategy? Explain

A: The markets in an economy are of different structures, ranging from being highly competitive to no…

Q: Give two examples of price discrimination. In each case, explain why the monopolist choices to…

A: Price discrimination occurs when different prices are charged for the same good consumed.  Examples…

Q: How will a monopolist respond to a rise in fixed costs?

A: A monopoly is when a market is experiencing a situation where a single seller offers a specific…

Q: Is this possible that the Monopolists necessarily make the profit?

A: Answer: As we know that the general concept or impression is that the monopolist has complete…

Q: Is a monopolist a price taker? Why or why not?

A: Perfect competition is the market structure with a large number of buyers and sellers who sell a…

Q: Is Price Discrimination a case of monopoly only? If yes, then why and how? Why is it favorable to…

A: A price-taking firm can only take the market value as given—it isn't in a very position to form…

Q: Describe how a monopolist gains from price discrimination.

A: Monopoly: - monopoly market structure is the structure in which there is only one seller of any good…

Q: In a world with no price discrimination, what is the monopolist's profit-maximization condition? In…

A: American’s willingness to pay, Q = 50 – P Europeans’ willingness to pay, Q = 10 – P/4

Q: Graphically shows how monopolist can earn profit in short-run

A: Monopoly refers to the market structure in which there is a single seller than caters to the whole…

Q: Discuss the differences between perfect and imperfect price discrimination (first defining what…

A: Monopolist's make profit by setting a price above the marginal cost. Competition among firms drives…

Q: why is the demand curve facing a monopolist downward sloping while the demand curve facing a…

A: In perfect competitive market, there are number of buyers and sellers, selling similar products.…

Q: Use the data on the chart for a monopolist. At its profit-maximizing output, this firm's price will…

A: We know that the monopolist profit maximization output condition is marginal revenue is equal to…

Q: A monopolist sells in two markets. What conditions must hold for the firm to be able to charge…

A: A monopolist is a seller who has control over the market supply. This means there is a single seller…

Q: What is the usual shape of a marginal revenue curve for a monopolist? Why?

A: A monopoly is a market where there is one seller for the product and the monopolist has control over…

Q: What are ways in which a monopolist can engage in price discrimination?

A: Price discrimination is a pricing strategy in which a firm charges different prices for the same…

Q: Given the same costs, the monopolist produces less output and charges a higher price compared to the…

A: Answer to the question is as under:

Q: why a monopolist is constrained by demand?

A: Monopoly is the sole supplier of exclusive or patented good which has no close substitute in the…

Q: A monopolist always earns a short run profit   is this true or false

A: We are going to discuss the profit maximization conditions for Monopoly to answer this question.

Q: What motivate an attraction to apply price discriminations? Will they succeed in applying price…

A: Price discrimination is when the firm sells the same good or service to different consumers for…

Q: Figure monopolist, to answer questions a-c.  a.  indicate the profit maximizing price and output…

A: Monopoly refers to a market in which there is only a single seller of a commodity. The seller has…

Q: Describe the concept of price discrimination with an example.

A: Price discrimination is defined as the price strategy in which the firms sell the same commodities…

Q: The total revenue curve for a monopolist will do which of the following? A Start high, decline, and…

A: The markets vary in their structures from market to market. This is because, there are different…

Q: When a single-price monopolist maximizes profits, price is greater than marginal cost. In other…

A: Monopoly expresses a market where a sole seller is privileged to satisfy the needs of the entire…

Q: Please refer to the figure above. When MC is constant, the ATC is also constant. How much profit the…

A: A monopoly acts as a price maker as it is the sole producer of a good in the market thus produces…

Q: How can a monopolist identify the profitmaximizing level of output if it knows its marginal revenue…

A: A monopoly refers to a single seller in the market. Thus, a monopolist faces no competition and has…

Q: monopolist can determine both the price and the output at the same time. Agree or Disagree

A: A monopoly is the sole producer of a good in the market thus having maximum market power hence will…

Q: In order to sell more of its product, a monopolist must A. sell to the Government. B. sell in…

A: Monopoly is a market form where there is only one seller who is price maker.