--%>

Perfectly price discrimination

Babble-On holds world-extensive patents for software which translates any of 314 spoken languages within text, along with automatic audio and text translations within any of the other three-hundred-thirteen languages. This figure illustrates that Babble-On as: (1) is a quantity-adjusting price gouger firm. (2) will be precisely compensated for its opportunity costs. (3) faces a perfectly price inelastic market demand curve. (4) has market power as a price maker. (5) has profit equal to area dcP1P3 only when it price discriminates perfectly.

1346_Market Power.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Highly competitive market in long run I

    I have a problem in economics on highly competitive market in long run. Please help me in the following question. When markets are highly competitive, in long run then: (1) Economic profits will be positive. (2) Economic gains will be negative. (3) Economic profits wi

  • Q : Production possibilities curves Give me

    Give me answer of this question. The production possibilities curves following suggest that: A) West Mudville should specialize in, and export, baseball bats. B) West Mudville should specialize in, and export, both baseballs and baseball bats. C) East Mudville should

  • Q : Produces differentiated goods by

    Monopolistic competitors generate differentiated goods which have numerous potential: (1) substitutes and important barriers to entry protecting them from potential rival producers. (2) close substitutes whose suppliers face no long run barriers to en

  • Q : Demand for a poorer good Household’s

    Household’s demand for a poorer good tends to fall if: (1) Supplies of complementary goods increase. (2) Prices of alternate goods increase. (3) Family income rises. (4) Its own price drops/falls. Can someone

  • Q : Change in profit by producing an

    The change in profit by producing an extra unit of good equivalents: (w) marginal revenue [MR]. (x) marginal revenue minus marginal cost [MR – MC]. (y) MR = MC. (z) ATC - AVC. Hello guys I want your advice. P

  • Q : Constant shortages of a good problem

    Constant shortages of a good are nearly always attributable to: (1) legal ceiling prices which are set beneath equilibrium. (2) Recessions which yield maximum unemployment rates. (3) Price gouging by firms through monopoly power. (4) Legal price floor

  • Q : Income elasticity of demand when

    When average income rises from $18,000 to $22,000 yearly and yearly gasoline consumption per household increases from 1000 to 1500 gallons, in that case the income elasticity of demand for gas is: (1) in the inferior range. (2) 0.5. (

  • Q : Immunity of Corporate giants in market

    Can someone help me in finding out the most precise answer from the given options. The Corporate giants are not immune to the market pressures since: (i) They experience the diseconomies of scale. (ii) Advertising decreases the barriers to entry. (iii) Profits give an

  • Q : Monopolistic competitor in market When

    When this monopolistic competitor makes Q units: (1) P > MC. (2) MR = MC. (3) total revenue total cost is maximized. (4) MSB > MSC. (5) All of the above.

    Q : Implications of law of demand what are

    what are the implications of law of demand to the government,household and business