19 A monopolist engaging in third-degree price discrimination
Ans.- (E)
All of the given statements hold when a monopolist firm practices third degree price discrimination .
19 A monopolist engaging in third-degree price discrimination has lower profit than a monopolist engaging in...
QUESTION 5: THIRD DEGREE PRICE DISCRIMINATION (20pt) A monopolist engages in third degree price discrimination.There are 2 types of consumers, and the monopolist wants to sell to both groups. The monopolist is allowed to charge different prices and hence engages in third degree price discrimination. The demand curve for each group (the entire group) is as follows 01 500 10P Q2 200-5P2 The total cost function is TC 2000+10Q (a) What price does this firm charge to each group? (b)...
(Figure: Third-Degree Monopolist) The monopolist in the graph has market power; he can separate the market into different consumer groups based on their elasticities of demand and he can prevent arbitrage. The monopolist has marginal and the second group costs of $10. If he practices third-degree price discrimination, he will charge the first group 50 47.5 45 42.5 40 3т.5 35 32.5 3D 27.5 25 22.5 20 17.5 15 12.5 1D 7.5 5 2.5 MR MR D 01 2 3...
4. If a monopolist can practice third degree price discrimination, what group gets a lower price and why? [Aim for around 200 words] 5. What is a natural monopoly? Do you think that pharmaceutical drugs fit this description? Why or why not? [Aim for around 200 words]
Please answer clearly and explain. Question 2 (35 points): (3rd Degree Price Discrimination) Let there be a monopolist firm and two groups of consumers. Suppose that marginal cost is defined by MC- 2. T'he demand that each consumer receives is given by Q,-50-pl 202 200-P 1) ( 4 points) Consider the monopolist engages in first degree price discrimina- tion only in market 2. Compute the monopoly profit in this market. ii) (4 points) Which group has a mhore inelastic demand...
Please answer clearly and explain. Thank you! Question 2 (35 points): (3rd Degree Price Discrimination) Let there be a monopolist firm and two groups of consumers. Suppose that marginal cost is defined by MC- 2. The demand that each consumer receives is given by 1 50- P 2Q2- 200 - P2 i) (4 points) Consider the monopolist engages in first degree price discrimina- tion only in market 2. Compute the monopoly profit in this market. ii) (4 points) Which group...
4. Assume that you are to decide whether a third degree discrimination situation is in society's interest. Assume that under the "no discrimination allowed" case, both groups of customers, group A and group B, can afford to buy positive amounts of the product at the same price. Under discrimination, both groups of customers can afford to purchase positive quantities of the product with group B paying a lower price than group A. Under discrimination the quantity bought by group B...
Third-Order Price Discrimination [26.4] 3. A monopolist implements ordinary price discrimination (3rd degree) with demands Q1-7-0.5P and Q2-5-0.5P. Costs are C = Q2 a. b. What prices will the monopolist charge? illustrate the Efficiency Loss.
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
please help solve. Is this also 3rd degree price discrimination? A price-discriminating monopolist faces the following inverse demand functions: In Market One it is P1- 80-Q1 and in Market Two it is P2 60-Q2 Marginal cost is constant at $10. Consumers in market two can resell the good to consumers in market one at a cost of $4 per unit. Find the profit-maximizing quantity and price charged in each market subject to the resale constraint.
Question 16 Marginal revenue and price are equal for competitive firms because: price is the same as average revenue. its demand curve is upward sloping. price is constant for all levels of output. price must decrease as quantity increases. Question 17 2 pts An industry's cost may decrease in the long run due to: constant returns to scale. re-economies of scale. economies of scale. diseconomies of scale. Question 18 2 pts Which of the following is true for a monopolist?...