Ask Experts Questions for FREE Help !
Ask

microeconomics

Asked May 24, 2012, 02:36 AM — 2 Answers
Uder what condition is it both possible and profitable ro practise price discrimination

2 Answers
Tonmayz's Avatar
Tonmayz Posts: 2, Reputation: 1
New Member
 
#2

May 24, 2012, 02:39 AM
economics
Who is a discriminating monipolist
Helpful
ebaines's Avatar
ebaines Posts: 10,033, Reputation: 5529
Expert
 
#3

May 24, 2012, 08:34 AM
Yuo've hit on at least a partial answer to yuor own question. A monopolist can charge different custoners different prices for the same good or servixe, and so his profits can be maximized by pricing such that gross margin per unit times volume is maxized. For example: utilities typically charge different rates for residential versus commercial customers. Airlines try to discrimiate in their pricing by charging more for passengers who make last minute changes and/or who fly round-trip within a week, assuming these customers to be business travelers as opposed to tourists (who can relatively easily change their plans to find a cheaper fare). But they can really only do this on flights from airports where there is relatively little competition (i.e. where there is a monopoly or perhaps an oligopoly).
Helpful

Not your question? Ask your question View similar questions

 
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Add your answer here.

Remove Text Formatting

Undo
Redo
 
Decrease Size
Increase Size
Bold
Italic
Underline
Align Left
Align Center
Align Right
Ordered List
Unordered List
Decrease Indent
Increase Indent
Insert Email Link
Wrap [QUOTE] tags around selected text
Wrap [CODE] tags around selected text
Wrap [HTML] tags around selected text
Wrap [PHP] tags around selected text
Wrap [YOUTUBE] tags around selected text
Notification Type:



Check out some similar questions!

Microeconomics [ 2 Answers ]

What is Lagrangian multiplier regarding optimization? ?

Microeconomics [ 1 Answers ]

Hi~ I need help understanding the concept of how marginal cost and marginal product of labor are related. Thank you~! =)

Microeconomics question [ 1 Answers ]

Using an isoquant map and a given inpu-price ratio, explain how one would derive the long run cost curves of a firm


View more Other Subjects questions Search