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Unformatted text preview: increasing producer surplus • Legal restrictions on price discrimination, so firms use various practices o Volume discounts o Student discounts o Product Placement Milk at Meijer Summary • A perfectly price-discriminating monopolist produces the same as perfect competition • Short-Run o MR is different (MR=P in perfect competition) o Know what P a monopolist charges • Long-Run o Profitability assessment is same: P vs. ATC o Difference: other firms can exist, so profits will be zero Chapters 15 & 16 14:25 14:25...
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This note was uploaded on 10/04/2011 for the course ECON 201 taught by Professor C.liedholm during the Spring '07 term at Michigan State University.
- Spring '07