For firms to price discriminate they must Be earning an economic profit Be able to insure...
For firms to price discriminate they must Be earning an economic profit Be able to insure that buyers can resell the product Be able to adjust price on the basis of cost Be able to segment buyers
Homework Answers
Ans. For firms to price discriminate they must:-
Be able to segment the buyers
In order to price discriminate there are three factors: the firm must have market power, the firm must be able to recognize differences in demand or segment the buyers and the firm must have the ability to prevent resale of the product.
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For firms to price discriminate they must Be earning an economic
profit Be able to insure...
17. In order to price discriminate, a monopoly firm must be able to: a separate customers...
17. In order to price discriminate, a monopoly firm must be able to: a separate customers based on different elasticities of demand b. charge each customer the same price. c. incur a different cost for producing each unit of output. d. all of the above. 18. If DeBeers has a monopoly in the diamond market, then: a. DeBeers must be engaging in perfect price discrimination if it is charging every customer the same price for a diamond. b. the marginal...
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Suppose firms in a monopolistically competitive market are earning economic profits. Entry will occur until the OA. typical firm makes zero economic profit. B. price equals the marginal cost. O C. price equals maginal revenue. OD. typical firm has a loss.
If a firm is earning economic losses,
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1. Draw the diagram for a profit-maximizing monopolist earning an economic profit. Show the profit maximizing...
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are making an economic Today, firms in a perfectly competitive market run, firms will profit. In...
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In the long-run, if existing firms are earning zero-economic profit, this implies: ATC is greater than price. AFC is less than price. 8 01:02:26 ATC is equal to price. AFC is equal to price.
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