Understanding First Degree Price Discrimination | Perfect price or first-degree Price discrimination

Описание: Understanding First-Degree Price Discrimination
Perfect price discrimination or first-degree Price discrimination
perfect price discrimination is the situation in which a monopolistic firm has sold each unit of community separately to the consumer and charged the maximum price that the consumer is willing to pay for one unit of the commodity. this is called the reservation price. In this case, the monopoly can Grab all consumer surplus from the consumer. In this is consumer surplus will be zero if it is also known as first-degree price discrimination.


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