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SECOND-DEGREE PRICE DISCRIMINATION: A form of price discrimination in which a seller charges the different prices for different quantities of a good. This also goes by the name block pricing. This is possible because the different quantities are purchased by different types of buyers with different demand elasticities. This is one of three price discrimination degrees. The others are first-degree price discrimination and third-degree price discrimination.
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Lesson 19: Monopolistic Competition | Unit 2: Revenue And Cost
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Page: 6 of 22
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Topic:
The Revenue Numbers
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- This table presents the total revenue (TR), average revenue (AR), and marginal revenue (MR) received by a given monopolistic firm.
- A few points of interest about these numbers.
- Prices fall into a very narrow range, from $4.75 to $5.25. This narrow range is an indication of monopolistic competition.
- Total revenue increases and marginal revenue remains positive with greater levels of production. This indicates that demand facing this firm is elastic.
- In fact, should you calculate the price elasticity of demand, you'll see that demand is relatively elastic, which is another indication of monopolistic competition.
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LAW OF SUPPLY The direct relationship between supply price and the quantity supplied, assuming ceteris paribus factors are held constant. This economic principle indicates that an increase in the price of a commodity results in an increase in the quantity of the commodity that sellers are willing and able to sell in a given period of time, if other factors are held constant. The law of supply is an important principle in the study of economics.
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PINK FADFLY
[What's This?]
Today, you are likely to spend a great deal of time at a dollar discount store hoping to buy either a how-to book on fine dining or a coffee cup commemorating the first day of winter. Be on the lookout for letters from the Internal Revenue Service.
Your Complete Scope
This isn't me! What am I?
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Ragnar Frisch and Jan Tinbergen were the 1st Nobel Prize winners in Economics in 1969.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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FX
Foreign Exchange
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