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(Solved): Part IV: Firms and Factors Markets 6)When is price discrimination likely to increase total surplus? ...



Part IV: Firms and Factors Markets

6)When is price discrimination likely to increase total surplus?

7)When a firm in an oligopoly reduces output, who gets most of the gains from the reduction: the firm that reduces output or the other firms in the industry?

8)Why do we classify McDonald’s and Burger King as monopolistic competitors rather than as pure competitors? Isn’t a hamburger just a hamburger?

9)From a profit making perspective, why is employer discrimination just plain dumb?
 



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Question 6. Price Discrimination is likely to increase Total Surplus when the prices are lower.The Consumers that are highly elastic May gain Consumer Surplus from the lower prices thus increasing the Total Suplus . Question 7. When a firm in an olig
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