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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,
What else can I help you with?
What is persistent in economics?
Persistent dumping is a tendency of a domestic monopolist to charge a higher price in a country as compared to the international price.
Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
How does a perfectly price-discriminating monopolist maximize profits by charging different prices to different customers based on their willingness to pay?
A perfectly price-discriminating monopolist maximizes profits by charging each customer the highest price they are willing to pay. This allows the monopolist to capture all of the consumer surplus and maximize revenue.
What is persistent dumping in economics?
Persistent dumping is a tendency of a domestic monopolist to charge a higher price in a country as compared to the international price.
Why do companies practice price discrimination?
Price discrimination is based on the idea that each customer has his or her own maximum price he or she will pay for a good. If a monopolist sets the good's price at the highest maximum price of all the buyers in the market, the monopolist will only sell to the one customer willing to pay that much. If the monopolist sets a low price, the monopolist will gain a lot of customers, but the monopolist will lose the profits it could have made from the customers who bought at the low price but were willing to pay more. Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good. (gradpoint)
What is persistent in economics?
Persistent dumping is a tendency of a domestic monopolist to charge a higher price in a country as compared to the international price.
Will a monopolist charge a lower price where demand is price elastic and a higher price where demand is price inelastic?
Yes. A monopolist would tend to charge a price closer to fair market value when the demand for a good is elastic. If not demand would be affected. With a monopoly controlled inelastic good the consumer has no recourse and there for would be and the mercy of the supplier.
How does a perfectly price-discriminating monopolist maximize profits by charging different prices to different customers based on their willingness to pay?
A perfectly price-discriminating monopolist maximizes profits by charging each customer the highest price they are willing to pay. This allows the monopolist to capture all of the consumer surplus and maximize revenue.
What is persistent dumping in economics?
Persistent dumping is a tendency of a domestic monopolist to charge a higher price in a country as compared to the international price.
Why do companies practice price discrimination?
Price discrimination is based on the idea that each customer has his or her own maximum price he or she will pay for a good. If a monopolist sets the good's price at the highest maximum price of all the buyers in the market, the monopolist will only sell to the one customer willing to pay that much. If the monopolist sets a low price, the monopolist will gain a lot of customers, but the monopolist will lose the profits it could have made from the customers who bought at the low price but were willing to pay more. Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good. (gradpoint)
Why do companies practice discrimination?
Price discrimination is based on the idea that each customer has his or her own maximum price he or she will pay for a good. If a monopolist sets the good's price at the highest maximum price of all the buyers in the market, the monopolist will only sell to the one customer willing to pay that much. If the monopolist sets a low price, the monopolist will gain a lot of customers, but the monopolist will lose the profits it could have made from the customers who bought at the low price but were willing to pay more. Price discrimination recognizes that groups of consumers are willing and able to pay different amounts for a good. (gradpoint)
Explain why the monopolist produces a lower output and charges a higher price?
monopolist's tend to charge? a.Lowe; lower b.higher; lower c.lower; higher d.higher; higher e.higher; the same
How is price determined in a monopoly to produce maximum profits?
In a monopoly, price is determined by the monopolist's ability to set the price above marginal cost, as there are no direct competitors. The monopolist maximizes profits by producing the quantity of output where marginal revenue equals marginal cost. This typically results in a higher price and lower quantity sold compared to a competitive market, allowing the monopolist to capture consumer surplus as profit. The price is then set on the demand curve at the quantity produced, reflecting the highest price consumers are willing to pay for that quantity.
Why is marginal revenue less than price for a monopolist?
Marginal revenue is less than price for a monopolist because in a monopoly market, the monopolist is the sole seller and has the power to set the price. To sell more units, the monopolist must lower the price, which reduces the revenue gained from each additional unit sold. This results in marginal revenue being less than the price.
What is monopolist's marginal revenues less than the price of its goods?
because the monopolist firms are price maker and they can set any price they want and the customers are not perfect knowleged
What Monopolist can decide?
they decide price and quantity.
What is the relationship between price and marginal revenue when a monopolist cuts the price to sell more?
Between them exist a simple line of difference, a monopolist can sale more with less money CHACHA!
