Efficient means there is some way to make some group

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efficient means there is some way to make some group better off without hurting some other group monopoly is Pareto inefficient since p > MC measure of deadweight loss - value of lost output.
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Natural monopoly When at the efficient level q , i.e. p.q / D MC.q / , firm makes negative profits because p.q / < AC.q / . Common in industries with high fixed costs and low marginal costs. Utility providers: gas companies, electricity, etc. “Sensible” way to regulate a natural monopoly is to impose p D AC .
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First-degree Price discrimination Perfect price discrimination, i.e., each unit of the good is sold to the individual who values it most highly at the maximum price the individual is willing to pay
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Two-part tariffs what happens if everyone is the same? entrance fee = full surplus usage fee = marginal cost Examples: amusement park, razor blades.
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