Asked by Kattelin Crocker on Jul 08, 2024
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When a monopolist practices price discrimination as opposed to setting a single price,the monopolist increases its profits by capturing consumer surplus.
Price Discrimination
The strategy of selling the same product to different customers at different prices based on the willingness to pay.
Consumer Surplus
The disparity between the amount consumers propose to pay for a good or service and the amount they finally pay.
Profits
The financial gain obtained when the revenue from business activities exceeds the costs and expenses incurred in operating the business.
- Master the concept and repercussions of price discrimination in the context of monopolistic and oligopolistic environments.
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Learning Objectives
- Master the concept and repercussions of price discrimination in the context of monopolistic and oligopolistic environments.
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