63: Price Discrimination Flashcards
1
Q
single price monopolist
A
monopolists who charge the same price to everyone
2
Q
price discrimination
A
charging different prices to different consumers of the same good
3
Q
perfect price discrimination
A
when the monopolists charges each consumer their willingness to pay, this capturing all consumer surplus
4
Q
how does price discrimination change dead weight loss?
A
lowers dead weight loss by lowering the lowest price
5
Q
types of discrimination (3)
A
1) advance purchase restrictions
2) volume discount
3) two part tariffs
6
Q
two part tariffs
A
cub fee plus price of purchases
ex: costco
