Why is it necessary for a firm that practices price discrimination be a price maker rather than a price taker?
What will be an ideal response?
A price taker has no market power and therefore cannot influence market price. A price maker, on the other hand, is able to influence market price. As long as a seller cannot influence market price, it will not be able to engage in price discrimination.
Economics
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Why does a price ceiling set below the equilibrium price of a good lead to a shortage of the good in the market?
What will be an ideal response?
Economics
According to research by Stock and Watson, the recent decline in volatility in many macroeconomic variables was a
A) sudden drop that occurred around 1984. B) gradual decline throughout the 1980s. C) sudden drop that occurred around 1990. D) gradual decline throughout the 1990s.
Economics