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EC2001 - Intermediate Microeconomics > Monopoly Behaviour > Flashcards

Flashcards in Monopoly Behaviour Deck (4)
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What is first-degree price discrimination

sell each unit to the individual that is willing to pay the amount, at the highest price


When will the produce sell during first-degree price discrimination

the producer sells each unit of the good at the maximum price it'll command, which yields it the maximum possible profit by producing P = MC


What is second-degree price discrimination

the price per-unit of output is not constant but depends on how much you buy


What is third-degree price discrimination

monopolist sells to different people at different prices but every unit sold to a given group of individuals is sold at the same price