Examlex

Solved

If a Market Is Controlled by One Perfect Price Discriminator

question 23

Essay

If a market is controlled by one perfect price discriminator who is able to charge each consumer the highest price that consumer is willing to pay,the seller will produce output until the price paid by the last consumer is equal to the marginal cost of making the good.That is,the price of the last good equals the marginal cost of making the good.If welfare is measured as consumer surplus plus producer surplus,compare this market structure to a competitive market in terms of efficiency and equity.


Definitions:

Narrative Review

A technique for literature reviews in which the author locates and reports on all the studies he or she can find, providing a qualitative summary.

Spatial Abilities

The ability to comprehend, rationalize, and recall the spatial relationships between objects or areas.

Mathematical Abilities

The capacity to perform and understand various mathematical operations, concepts, and problem-solving techniques.

Cerebral Hemispheres

The two halves of the brain, each controlling the opposite side of the body and specializing in different functions, such as language and spatial abilities.

Related Questions