Price discrimination adds to social welfare in the form of
(i) |
increased total surplus. |
(ii) |
reduced costs of production. |
(iii) |
increased consumer surplus. |
Group of answer choices
(i) and (iii) only
(i) only
(i), (ii), and (iii)
(i) and (ii) only
(i) and (iii) only
Explanation: In price discrimination, a producer sells the same good at different prices to different consumers. It helps in increasing the consumer surplus and the total surplus.
Price discrimination adds to social welfare in the form of (i) increased total surplus. (ii) reduced...
Deadweight loss occurs when A) consumer surplus is reduced. B) the maximum level of total welfare is not achieved. C) producer surplus is greater than consumer surplus. D) firms maximize profits.
Price discrimination O a. increases total profit for the firm. O b. increases consumer surplus. O c. Both a) and b) Od. None of the above.
Perfect price discrimination a.increases profits to the firm. b.increases total surplus. c.decreases consumer surplus. d.All of the above are correct. For a firm to price discriminate, a.it must be a natural monopoly. b.it must be regulated by the government. c.it must have some market power. d.consumers must tell the firm what they are willing to pay for the product. A monopoly's marginal cost will a.be less than its average fixed cost. b.be less than the price per unit of its...
How do you do these problems? Can you please help me?
2nd Degree Price Discrimination Problem Suppose there are 100 wealthy consumers, who value the 1" unit of a good at $15 and a 24 unit at S10. There are also 100 moderate income consumers, who value only the 1" unit at $12. For the producer, AC = MC = 6. There are no fixed costs. 1. No price discrimination. One unit sells for $15. 12. No price discrimination. One...
Producer surplus is the Group of answer choices the difference between the willingness to sell and the willingness to buy. the difference between the price and the opportunity cost of production. total revenues. the difference between what the consumer offered and the actual price.
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...
Producer surplus measures the value between the actual selling price and the: Group of answer choices profit-maximization price. deadweight loss price. price sellers are willing to sell the product. lowest price sellers are willing to sell the product. When the opportunity cost of producing carrots increases as more carrots are produced, then: Group of answer choices the production possibilities curve is a straight line. resources are equally suited to the production of carrots and to other goods. no more carrots...
2. Social Welfare Suppose the market of a good has linear market demand as Q 120-P. A firm in the (a) Find the profit-maximized price, output quantity, and profit of the firm under (b) Find the profit-maximized price, output quantity, and profit of the firm under c)Calculate the consumer surplus under the two cases and compare your results market has the total cost of production as C-200 perfect competition monopoly. What is the dead weight loss of the market due...
shortage, Surplus and Gov’t. Price Controls Assume: Sellers put the Price for the angelfish, at $100. What is the “effective” Quantity? What is happening, at this Price? How much of one? Will the Price tend to rise or fall? If this price is imposed by the government (legal force) - what is this type of Price Control called? At the off-equilibrium Price of $100, What Area shows Total Revenue (Total Expenditures)? What Area shows Total Cost (to Seller)? What...
4) Welfare Analysis: Price Ceiling (10 points) Price ($) Supply Demand 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 Quantity Now imagine a price ceiling of $30. f. What effect does this have on Consumer and Producer Surplus? Start by clearly labeling the new CS and PS on the graph. g. What are the new dollar values for producer, consumer, and total surplus? h. Is there a Deadweight Loss? Find its value by...