Lecture Note 18  Chapter 10.3.  Price Discrimination Preloader

Lecture Note 18 Chapter 10.3. Price Discrimination - PowerPoint PPT Presentation


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Price Discrimination. A monopolist can benefits by charging different prices for identical items.Example-- Mrs. Lovett\'s PiesSet different price for different customer in the town.She can sell more pies than a true monopolist.. In fact, her sales can be up to the competitive levelThis includes additional producer\'s surplus than scenarios under monopoly. Social gain increases because of price discrimination..

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