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What Is Perfect Price Discrimination and Why Do Economists Believe

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What is perfect price discrimination and why do economists believe that no firm is able to practice perfect price discrimination?


Definitions:

Pure Monopolist

A market structure where a single company is the exclusive provider of a product or service in a market, facing no competition.

Economies of Scale

Economic benefits that companies gain from their size of operations, which result in a reduction in the cost per unit as the scale increases.

Horizontal Demand

A market situation where the demand for a product remains constant regardless of changes in its price.

Entrepreneurs

Individuals who, rather than working as employees, found and run small businesses, assuming all the risks and rewards of the venture.

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