Group Paper

Group Paper Team of Barnes, Rosa, Torres, Julks, Rodriguez, and McKee Economics 361 Bud Stevenson March 12, 2003 The Price-Discriminating Monopolist A monopoly is an industry that wees goods or services for which no close substitutes exists and in which there is only supplier that is protected from competition by a barrier preventing the entry of new unfalterings. It has been said that a monopoly has absolute market power. Market power is the ability to work the market, and in particular the market impairment, by influencing the total measuring stick offered for sale. This means that a monopolist has fully control everyplace the market bell. In terms of diagram, this implies that a monopolist faces a downward-sloping demand curve. In perfect competition, an individual firm faces a horizontal demand curve. There are, broadly, two types of monopoly. unity being a single price monopoly, the other a price discriminating monopoly. A single price monopoly is a firm that make dos each unit of its output at the comparable price to all its customers. A single price monopoly decides to produce an output level or choose a price that maximizes its total profit. Price discrimination is the practice of selling varied units of a good or service for variant prices.

To be able to price discriminate, a monopoly must do two things. It must identify and separate different buyer types, and sell a product that cannot be resold. Price discrimination is charging different prices for a single good or service because of differences in buyers allowingness to pay and not because of differences in business costs. So not all price differences are price discrimination. Examples of price discrimination could be the different price of depiction tickets for students as compared to other movie goers; different price for a COTA bus ticket for senior citizens. Because by doing so it will be able to convert consumer surplus into economic profit. In a single-price monopoly, consumers enjoy a... If you want to get a full essay, order it on our website: Ordercustompaper.com

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