second_degree

second_degree - Problems on Second degree Price...

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Problems on Second degree Price Discrimination 1. Problem #5 on page 129 at end of chapter 6 (4th edition) 2. Problem #6 on page 129 at end of chapter 6 (4th edition) 3. A monopolist is doing second degree price disrcimination and there are two groups of consumers: low demand (L) and high demand (H). . Which of the following statements is/are true? (a) The low demand group may gain if the government bans price discrimination and forces the monopolist to charge only one two part tari±. (b) The low demand group will gain if the government bans price discrimination and forces the monopolist to charge only one two part tari±. (c) The high demand group may gain if the government bans price discrimination and forces the monopolist to charge only one two part tari± (d) The high demand group will gain if the government bans price discrimination and forces the monopolist to charge only one two part tari± 4. (Harder) There are three groups of consumers. Prior to starting to starting to do second degree price discrimination only two groups were served. But with price discrimination all of them are served. Can you conclude that total deadweight loss decreased? 5. With second degree price discrimination, the surplus of consumers in
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This note was uploaded on 10/15/2008 for the course ECON 171 taught by Professor Hopenhayn during the Spring '07 term at UCLA.

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second_degree - Problems on Second degree Price...

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