Th3.4: ^^ Consumers Flashcards
With a natural monopoly…
consumers tend to be better off than if there was competition
What will happen when firms enjoy economies of scale?
they will be more efficient and customers will enjoy a higher consumer surplus
Why may monopolists do due to cross subsidisation?
produce an increased range of goods or services
What will the use of price discrimination allow?
survival of a product or service, and benefits some customers (those in cheap markets) whilst is negative for others - e.g it is said economy flights are funded by business flights
What may consumers see due to a lack of competition?
see a poorer quality service and may pay higher prices
Since there is only one firm producing the good, what might consumers see?
that there is less choice