 Describe price discrimination as the practice of charging different prices to different consumer groups for the same product, where the price difference is not justified by differences in cost.
 Explain that price discrimination may only take place if all of the following conditions exist: the firm must possess some degree of market power; there must be groups of consumers with differing price elasticities of demand for the product; the firm must be able to separate groups to ensure that no resale of the product occurs.
 Draw a diagram to illustrate how a firm maximizes profit in third degree price discrimination, explaining why the higher price is set in the market with the relatively more inelastic demand.
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Assumptions of the model
First up... the characteristics of oligopoly... you'll receive a handout on this. Next... games.... or, at least, "game theory"... some videos and a simulation to help explain this... and a task. Then you will make some notes, with diagrams, on the difference between collusive and noncollusive oligopoly. We will finish up with some case studies.
A bit of perfect competition with a dash of monopoly power (price setting ability) = monopolistic competition. You'll get a packet to meet the objectives above. The graphs are the same as for monopoly but with a flatter (more elastic) demand curve. Barriers to entry
We will go further into the packet in the next two days to address these other objectives for monopoly. It is particularly important to be able to compare perfect competition to monopoly  this could be the second part of a long essay, i.e. the evaluation section. Assumptions of the model
Now that we have looked at what makes up perfect competition, we turn our attention to imperfect competition and go right to the opposite end of the market structure spectrum... monopoly. We'll start off with looking at what characterizes the market and then look at the graphs. These are a bit more complicated than perfect competition so it's important that you follow the steps so that you don't put price in the wrong place... also be neat (with a ruler!) and remembere the relationsip between MC and AC curves. The profit maximising rule is still the same.... "where MR equals MC, that is where we want to be"!
Today we will finish off the packet.… you should read the article “Why is Perfect Competition Economically Efficient?” and p108111 of textbook. Then use graphs to explain that in the short run firms in perfect competition are allocatively efficient but may not be productively efficient, whereas in the long run they are both allocatively and productively efficient. Shutdown and breakeven points
Assumptions of the model
You will be given a pack of resources which will cover the objectives above. 11E  what you need to get done today Friday 2 February are the objectives under the Revenue subheading, i.e. the tasks in red... we will go over it on Monday... when you finish this you can read p97100 (Profitmaximising level of output and Final note on profit theory)
Revenues (read page 8993)
Production in the long run: returns to scale
Use p 8588 to do the following tasks:

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