Discriminating monopolists are able to charge different


Discriminating monopolists are able to charge different prices to different customers. In fact, a perfectly discriminating monopolist is able to charge each customer his exact (personal) reservation price for the item the monopolist sells. Explain why this would be beneficial for the monopolist in terms of his revenue and profit. A graph might help you. (Think about what this would mean for the monopolist's MR curve as you answer this question. Look back at the notes where we discussed the costs and benefits for a monopolist to raising price. What happens to the cost if he is perfectly discriminating?)

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Business Economics: Discriminating monopolists are able to charge different
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