Discounts-monopoly versus competition
Problem: Do you agree or disagree with the following statement, "Only a competitor would offer discounts to selected customers, because a monopolist can always require his customers to pay full price." Carefully Explain.
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Consider a monopolist facing a market demand curve given by q = 186- p(q). The monopolist's fixed costs and variable costs are equal to Cf = 2400 and C(q) = q2/10 +10q, respectively.
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Do you agree or disagree with the following statement, "Only a competitor would offer discounts to selected customers, because a monopolist can always require his customers to pay full price." Carefully Explain.
Many firm have patents giving them monopoly power; yet, many do not price discriminate across state boundaries. Almost surely there are differences in price elasticity of demand across states.
How do you define your metric of success for the product? Is it in Units? Is it in Market penetration? Is it in dollars sold? Is it another metric? Why?
The companies in the detergent market closely fit the mold of a monopolistic competitive firm. Research a company in this market and explain how it fits some of the characteristics of a monopolistic competitive firm.
Review the Roadmap to Success for additional ideas and steps you may want to include in your career plan.
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