Chapter 9 Flashcards
1
Q
What are the different types of monopolists? What do each of them mean?
A
Single price monopolist (Sells each units at the same price to each client), First degree price discrimination (also called; perfect price discrimination. These monopolists can identify the WTP and sells the good at a different price to all consumers. Second degree price discrimination depends on the quantity bought by each consumer. Third degree price discrimination is when the monopolist changes the price for different types of consumers.
