monopoly 3 Flashcards
(6 cards)
by adjusting the _________(or equivalently, the prices charged) the monopolist can choose any point on the DC, but …..
The quantity produced (supply)
it can NOT choose a point OFF the demand curve
the deadweight loss
a cost to society created by market inefficiency that happens when S & D are out of equilibrium.
society loses on production since the monopoly does not produce enough to benefit everyone.
the monopoly profit
the profit is not a social cost because every business has a right to make a profit.
price discrimination
the business practice of selling the same goods at different prices to different customers.
even though the cost of producing for the 2 customers is the same.
price discrimination is a rational strategy for a ________________
profit maximizing monopoly (increase its profits)
4 types of price discrimination
personal price discrimination
geographical price discrimination
on the basis of use
according to time
