4-13-09 - Microeconomics Class Notes 4/13/09 Skipping the...

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Microeconomics – Class Notes – 4/13/09 Skipping the material from chapter #10 WORKBOOK HOMEWORK PROBLEMS: Chapter #8: (1-20), 22 27, 28, 29 Chapter #9: 1-7, 10, 11, 14, 15 ------ Single-price monopolies Involve Price discrimination – charge different customers different prices for the same good service How the single-price firm adjusts the price depends on (check this): o Income o Elasticity of demand – how responsive are some people to changes in price o Segregate certain subpopulation of customers a certain price to get more profit out of individuals or groups with more money o Wall St. Journal Student rates – students are much more responsive to changes in price. If the newspaper changes the price (higher or lower), the student will respond more to the change in price Adult rates Monopoly: Characteristics (need): o One seller o One product o High barriers to entry – If a firm is making a monopoly, some firms want to get a portion of that monopoly profit, but they cannot enter the market because there are high barriers to entry. Budweiser – Budweiser has a monopoly on Budweiser Beer However, there are Substitutes Monopolistically competitive firm
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4-13-09 - Microeconomics Class Notes 4/13/09 Skipping the...

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