Perfectly Price Discriminating Monopoly

Discriminating monopoly or price discrimination occurs when a monop olist charges the same buyer different prices for the different units of a commodity even though these units are in fact homogeneous. Monopolist marginal cost curve.

Price Discriminating Monopolist

This means that there is no consumer.

Perfectly price discriminating monopoly. Such a situation is described as perfectly discriminating monopoly. Sometimes known as optimal pricing with perfect price discrimination the firm separates the market into each individual consumer and charges them the price they are willing and able to pay if successful the firm can extract the entire consumer surplus that lies underneath the demand curve and turn it into extra revenue or producer surplus. It is more usual however to find that a monopolist sells identical products to different buyers at different prices.

Perfect price discriminating holding everything else constant if the united states produces an additional 1 billion worth of goods. Which they export to canada and canada produces an additional 2 billion worth of goods that the us imports. In a perfectly price discriminating monopoly the monopolist charges each consumer their maximum willingness to pay if this value is above marginal cost.

A discriminating monopoly is a single entity that charges different prices typically those that are not associated with the cost to provide the product or service for its products or services for.

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