Monopoly

Question 1

What is 3rd degree price discrimination

Answer 1

Different groups of consumers are charged a different price for the same good or service like on higher prices at peak times for trains.

Question 1

what is 2nd degree price discrimination

Answer 1

When prices are different based on volume purchased. Like gas or selling left overs for cheaper and special offers like 3 for 2

Question 2

What is 1st degree price discrimination

Answer 2

When each specific consumer is charge a different price. e.g. Lawyers might charge different bases on incomes.

Question 3

What is price discrimination

Answer 3

When firms charge different groups of consumers different prices for the same product

Question 4

Factors that influence a monopoly

Answer 4

1.Economies of scale
2.Limit pricing
3.Set-up costs
4.Number of competitors

Question 5

What is a pure monopoly

Answer 5

When the market is one firm

Question 6

What is considered a legal monopoly

Answer 6

A firm with over 25% market share