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Flashcards in week 8 Deck (25)
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1
Q

what is price discrimination

A

different customers pay different prices for the same good

2
Q

why does D slope down?

A
  1. people differ in their willingness to pay or max price a customer will pay to purchase one unit
  2. people may buy multiple units but demand reflects declining marginal value for good
3
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

4
Q

what does a non-discriminating monopolist look like?

A
5
Q

for non-discriminating monopolist, where is CS?

A
6
Q

for non-discriminating monopolist, where is PS?

A
7
Q

what is CS for discriminating monopolist, what about PS?

A
8
Q

what is second degree price discrimination?

A
9
Q

example of second degree price discrimination

A
10
Q

graphs for students and adults for 3rd degree price discrimination

A
11
Q

what is 3rd degree price discrimination

A
12
Q

exampel of 3rd degree price discrimination

A
13
Q

type of market structure

A
14
Q

what is product differentiation

A
15
Q

what are 4 features of a monopolistically competitive industry?

A
16
Q

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

in LR

A
17
Q

in short run, MC firms makes a negative profit if

in long run,

A
18
Q

show MC firms making positive profit in short run

A
19
Q

show MC firms making negative profit in short run

A
20
Q

what happens to monopolistic competition in the long run?

A
21
Q

two characteristics of long run equilibrium for monopolistic competitive industry

A
22
Q

show LR equilibrium for MC industry

A
23
Q

compared to perfect competition, monopolistic competition leads to

A
24
Q

cost and benefit of Monopolistic competitive firms

A

cost: inefficient qty
benefit: product variety

25
Q

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

A