week 8 Flashcards by | darkhorse | | Brainscape

Q

what is price discrimination

A

different customers pay different prices for the same good

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Q

why does D slope down?

A

people differ in their willingness to pay or max price a customer will pay to purchase one unit
people may buy multiple units but demand reflects declining marginal value for good

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Q

what is first degree price discrimination?

A

selling each unit of output at a price equal to buyer’s willingness to pay

D=MR

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Q

what does a non-discriminating monopolist look like?

A

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Q

for non-discriminating monopolist, where is CS?

A

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Q

for non-discriminating monopolist, where is PS?

A

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Q

what is CS for discriminating monopolist, what about PS?

A

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Q

what is second degree price discrimination?

A

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Q

example of second degree price discrimination

A

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Q

graphs for students and adults for 3rd degree price discrimination

A

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Q

what is 3rd degree price discrimination

A

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Q

exampel of 3rd degree price discrimination

A

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Q

type of market structure

A

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Q

what is product differentiation

A

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Q

what are 4 features of a monopolistically competitive industry?

A

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Q

in the SHORT run, MC firms can make a positive profit if

in LR

A

Q

in short run, MC firms makes a negative profit if

in long run,

A

Q

show MC firms making positive profit in short run

A

Q

show MC firms making negative profit in short run

A

Q

what happens to monopolistic competition in the long run?

A

Q

two characteristics of long run equilibrium for monopolistic competitive industry

A

Q

show LR equilibrium for MC industry

A

Q

compared to perfect competition, monopolistic competition leads to

A

Q

cost and benefit of Monopolistic competitive firms

A

cost: inefficient qty
benefit: product variety

Q

what does LR equlibrium look like for monopolistic competition and a typical firm in perfect competition

A