The answers provided hereunder offer only the correct approach to the questions, rather than the points that should be included in the examination for scoring marks. Readers should not simply evaluate their scores in the live examination on this basis. (Readers in general may not know why it is so, although my students would definitely understand what I mean.)
Section B
Section C
thanks for the suggested answer
ReplyDeletebut I have a question:
If ALL monopolists practice perfect price discrimination, why it's efficient? They did not consider the constraint that the transaction cost(the cost of practicing P.P.D.) may greater than they simply use simple pricing arrangement and this may mean that the monopolists are not producing effieciently
Thanks
if the transaction cost is greater,then the P.P.D will not be adopted and be ware that,when all constraint is noticed,there must be efficient
ReplyDelete