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In the context of price discrimination, equilibrium occurs when a firm charges different prices to different consumer segments based on their willingness to pay, maximizing its total revenue. This practice allows the firm to capture consumer surplus and increase profits compared to a single-price strategy. The equilibrium price for each segment reflects the marginal cost of serving that segment, leading to a more efficient allocation of resources. Overall, price discrimination can alter market dynamics, often benefiting the firm while potentially disadvantaging some consumers.
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How many types of price discrimination under monopoly?
There are three main types of price discrimination under monopoly: first-degree, second-degree, and third-degree. First-degree price discrimination involves charging each consumer their maximum willingness to pay. Second-degree price discrimination offers different prices based on the quantity consumed or product version, such as bulk discounts. Third-degree price discrimination segments consumers into different groups based on observable characteristics, charging each group a different price.
How are resources allocated under a capitalistic economy?
By the market mechanism...where they will be used most efficiently by those who can pay the price at equilibrium
Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost
What equilibruim price do firms operating under conditions of monopoly use?
Firms operating under conditions of monopoly set their equilibrium price where marginal cost (MC) equals marginal revenue (MR). This price is typically higher than the marginal cost, allowing the monopolist to maximize profits by restricting output. Unlike firms in competitive markets, a monopolist has the market power to influence the price, leading to higher prices and lower quantities of goods sold compared to competitive equilibrium.
Consumer equilibrium utility approach?
when does consumer attain equilibrium under the utility approach
Under which conditions is price discrimination possible?
discriminating possible and profiable
How many types of price discrimination under monopoly?
There are three main types of price discrimination under monopoly: first-degree, second-degree, and third-degree. First-degree price discrimination involves charging each consumer their maximum willingness to pay. Second-degree price discrimination offers different prices based on the quantity consumed or product version, such as bulk discounts. Third-degree price discrimination segments consumers into different groups based on observable characteristics, charging each group a different price.
How are resources allocated under a capitalistic economy?
By the market mechanism...where they will be used most efficiently by those who can pay the price at equilibrium
What has the author Burton A Zorn written?
Burton A. Zorn has written: 'Business under the new price laws' -- subject(s): Price discrimination, Unfair Competition
Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost
What equilibruim price do firms operating under conditions of monopoly use?
Firms operating under conditions of monopoly set their equilibrium price where marginal cost (MC) equals marginal revenue (MR). This price is typically higher than the marginal cost, allowing the monopolist to maximize profits by restricting output. Unlike firms in competitive markets, a monopolist has the market power to influence the price, leading to higher prices and lower quantities of goods sold compared to competitive equilibrium.
Consumer equilibrium utility approach?
when does consumer attain equilibrium under the utility approach
What is an example of discrimination under title VII?
B. Discrimination on the basis of race or national origin.
Is gender a protected class under anti-discrimination laws?
Yes, gender is a protected class under anti-discrimination laws, which prohibit discrimination based on gender in various areas such as employment, education, and housing.
What is consumer equilibrium under cardinal approach?
illustrate and explain e the consumer equilibrium ender cardinalist and ordinalist?
Is gender considered a protected class under anti-discrimination laws?
Yes, gender is considered a protected class under anti-discrimination laws, which prohibit discrimination based on gender in various areas such as employment, housing, and education.
What has the author T N Srinivasan written?
T. N. Srinivasan has written: 'Price normalization and equilibria in general equilibrium models of international trade under imperfect competition' 'Theories of long-run growth'
