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How can a monopolist charge different prices to different customers?
Ladydem
A monopolist has market power, this means that they can set the market price of a good through restricting output. A monopolist can charge different prices to different customers through price discrimination. Assumptions are made that they monopolists objective is to maximise profits. A monopolists profit maximising strategy is to charge different prices to different consumers varying on the price elasticity between them. This will extract the maximum consumer surplus, and thus maximise profits. To price discrimiate there must also be some degree of barriers to prevent consumers for switching suppliers. A common strategy of price discrimination is giving students a discount, this is because students are normally more sensitive to prices due to their low income. Students may only buy a product if a discount is given, so the firm provides a discount in order to make these sales.
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What is the purpose of charging different groups of customers different prices?
The purpose of charging different customers different prices is to meet their demand elasticities.
Why will a monopolist charge less than the highest price possible?
A true monopolist will charge a VERY LOW price, so as to cause his competitors to go out of business. Then, when other companies have given up, he'll raise his prices. But in a free economy, he can't raise prices TOO high, for fear of attracting new entrants to the market. So a monopolist will invariably team up with market regulators to prevent new competition from arising. The Example of the Year of this phenomenon is the taxicab alliance supported by taxicab regulators, trying to prevent Uber and Lyft from stealing the taxi market with lower prices and better service,
Can monopolist set a high price for product and still enjoy a high level of demand?
Monopolies can exploit their position and charge high prices because consumers have no alternative. High prices may affect a high level of demand though depending on how consumers react to the high prices.
How companies adjust their prices to take into account different types of customers and situations?
discuss how companies adjust their prices to take into account different types of customer and situations
What are three different approaches a firm might use to set prices for customers different geographical areas?
A firm might use a personal survey approach to help them set prices for customers of different geographical areas. They might also use a market research study. The really aggressive firm is going to call potential customers themselves and ask what they would pay for certain items.
What is the purpose of charging different groups of customers different prices?
The purpose of charging different customers different prices is to meet their demand elasticities.
Why do different tag agencies charge different prices in Oklahoma?
why do different tag agencies in ok. charge different prices
Why will a monopolist charge less than the highest price possible?
A true monopolist will charge a VERY LOW price, so as to cause his competitors to go out of business. Then, when other companies have given up, he'll raise his prices. But in a free economy, he can't raise prices TOO high, for fear of attracting new entrants to the market. So a monopolist will invariably team up with market regulators to prevent new competition from arising. The Example of the Year of this phenomenon is the taxicab alliance supported by taxicab regulators, trying to prevent Uber and Lyft from stealing the taxi market with lower prices and better service,
Effect of a monopolist's price increase?
If a monopolist raises his prices above marginal cost, he will increase his profits. This seems like a good thing for the monopolist. However, the down side is that it reduces the well-being of consumers. Most times, the harm to consumers is greater than the gain of the monopolist.
Can monopolist set a high price for product and still enjoy a high level of demand?
Monopolies can exploit their position and charge high prices because consumers have no alternative. High prices may affect a high level of demand though depending on how consumers react to the high prices.
How much is ECDL?
Different places will charge different prices. Contact a number of providers and they will give you prices.
Can massage therapists charge different prices?
Sure. That is fine if they are working for themselves, they can set their own prices. They can also charge different prices for different services or types of massage. The best advise is to charge the same, or close to the same, as other therapists in that area, but they are free to charge what they want. They are part of the free enterprise system.
Do online health food stores offer the lowest prices?
No they offer the highest prices, This is because they are easy to get and take advantage high number of customers to charge more.
Why does each venue of a tour have different prices?
depending on the distance cvered and the amount of petrol that wil be used , they charge different prices
How companies adjust their prices to take into account different types of customers and situations?
discuss how companies adjust their prices to take into account different types of customer and situations
How expensive are private investigators?
Private investigators charge all different prices depending on the situation and your location. The can charge a flat rate or charge by the hour. Your best bet is to contact a few and compare prices.
What is flexibleprice policy?
it is one in which customers pay different prices for the same type or amount of merchandise.
