Question
Course: Microeconomics 2 - Discrimination type I or perfect: Price according to reservation price (willingness to pay) True /False /Uncertain 1) The extraordinary profit from
Course: Microeconomics 2 - Discrimination type I or perfect: Price according to reservation price (willingness to pay)
True /False /Uncertain
1) The extraordinary profit from the application of the type I price discrimination strategy will be greater if the price elasticity of demand is higher. According to my professor, it is False. It needs to be justified
2) The type I price discrimination strategy generates a higher extraordinary profit than the single price strategy in the case of monopoly. According to my professor, it is True. It needs to be justified with graphs
3) Type I price discrimination strategy does not make sense when marginal cost is increasing. According to my professor, it is True. It needs to be justified
4) If the monopolistic firm moves from a single-price system to a type I price discrimination system, social cost necessarily increases. According to my professor, this is False. Justification is needed
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