Podcast
Questions and Answers
Which of the following is an example of third-degree price discrimination?
Which of the following is an example of third-degree price discrimination?
- Charging different prices for different qualities of a product
- Charging different prices based on the time of purchase
- Charging different prices based on the quantity of a product
- Charging different prices based on demographic traits of customers (correct)
What is an example of a product that is licensed using third-degree price discrimination?
What is an example of a product that is licensed using third-degree price discrimination?
- Big-box retailer products
- Airline tickets
- Lunch club membership card
- Econometric software (correct)
What is the purpose of price discrimination?
What is the purpose of price discrimination?
- To charge less to customers who value the product highly
- To charge different prices based on the time of purchase
- To charge the same price to all customers
- To charge more to customers who value the product highly (correct)
What is consumer surplus?
What is consumer surplus?
How can sellers extract consumer surplus through creative pricing schemes?
How can sellers extract consumer surplus through creative pricing schemes?
What is the short-run factor that is fixed in the production process?
What is the short-run factor that is fixed in the production process?
What is the long-run solution that allows all inputs, including technology, to change?
What is the long-run solution that allows all inputs, including technology, to change?
What is one solution for maintaining a monopoly market position in the long run?
What is one solution for maintaining a monopoly market position in the long run?
What is the appropriate decision rule for a regulated monopoly?
What is the appropriate decision rule for a regulated monopoly?
What is the purpose of providing a subsidy to a regulated monopoly?
What is the purpose of providing a subsidy to a regulated monopoly?
Which of the following is a challenge facing the regulator in determining the authentic risk-related return and the monopolist's realistic long-run average cost?
Which of the following is a challenge facing the regulator in determining the authentic risk-related return and the monopolist's realistic long-run average cost?
What is the final solution proposed to address the challenge mentioned in the text?
What is the final solution proposed to address the challenge mentioned in the text?
Which of the following is an example of a government franchise mentioned in the text?
Which of the following is an example of a government franchise mentioned in the text?
What does the long-run success of the monopoly franchise depend on?
What does the long-run success of the monopoly franchise depend on?
What is the public goal in selecting the winning firm for the franchise?
What is the public goal in selecting the winning firm for the franchise?
Which of the following is NOT mentioned as an example of a government franchise?
Which of the following is NOT mentioned as an example of a government franchise?
What is the main factor that the regulator needs to determine in relation to the monopolist's cost?
What is the main factor that the regulator needs to determine in relation to the monopolist's cost?
What is the purpose of franchising the monopolistic firm through a bidding war?
What is the purpose of franchising the monopolistic firm through a bidding war?
What is the relationship between the price and the long-run average cost in the selection of the winning firm?
What is the relationship between the price and the long-run average cost in the selection of the winning firm?
What is the goal of the monopoly franchise in pricing its products?
What is the goal of the monopoly franchise in pricing its products?
Which type of monopolist charges prices and supplies quantities that are the same as they would be in perfect competition?
Which type of monopolist charges prices and supplies quantities that are the same as they would be in perfect competition?
What is the scenario called when a monopolist charges each customer the highest price the customer is willing to pay?
What is the scenario called when a monopolist charges each customer the highest price the customer is willing to pay?
In second-degree price discrimination, what mechanisms does the monopolist use to induce customers to self-select based on how highly they value the product?
In second-degree price discrimination, what mechanisms does the monopolist use to induce customers to self-select based on how highly they value the product?
Which type of monopolist offers a menu of quantity-based pricing options?
Which type of monopolist offers a menu of quantity-based pricing options?
What is the opposite extreme of a monopolist that charges prices and supplies quantities that are the same as they would be in perfect competition?
What is the opposite extreme of a monopolist that charges prices and supplies quantities that are the same as they would be in perfect competition?
What is the scenario called when a monopolist can capture the entire consumer surplus by knowing the exact demand schedule of the customer?
What is the scenario called when a monopolist can capture the entire consumer surplus by knowing the exact demand schedule of the customer?
What is another possibility for a monopolist to extract the entire consumer surplus?
What is another possibility for a monopolist to extract the entire consumer surplus?
In second-degree price discrimination, what type of pricing options are designed to induce customers to self-select based on how highly they value the product?
In second-degree price discrimination, what type of pricing options are designed to induce customers to self-select based on how highly they value the product?
Which type of monopolist charges a different price to each client?
Which type of monopolist charges a different price to each client?
Which type of monopolist can measure how often the product is used and charge the customer the highest price the consumer is willing to pay for that unit of good?
Which type of monopolist can measure how often the product is used and charge the customer the highest price the consumer is willing to pay for that unit of good?
