Explain why a price discriminating monopolist would not necessarily want to price all along the entire demand curve
What will be an ideal response?
The reason that the monopolist would not want to price all along the demand curve is because eventually the price (marginal revenue) will fall below the marginal cost.
Economics
You might also like to view...
Which of the following is true for both perfectly competitive and monopolistically competitive firms in the long run?
A) P = MC. B) MC = ATC. C) P > MR. D) Profit equals zero.
Economics
The main attractive feature(s) of a negative income tax program is (are):
a. c and d. b. c, d, and e. c. it is simple. d. it avoids the stigma of hand-outs. e. it only subsidizes the unemployed.
Economics