Micro: Unit 4.5 -- Price Discrimination
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In this video, I will:
Review the conditions that must exist in the market in order for price discrimination to be
possible
Explain how price discrimination affects profits and efficiency for monopolies
Describe how price discriminators set their prices according to consumer purchasing power
Compare the consumer surplus and economic profits of a pure monopoly and a price
discriminating monopoly
Investigate the relationship between demand and marginal revenue for price discriminating
monopolies
Analyze how price discrimination drives a monopoly to be allocatively efficient
Describe how price discrimination is used in the airline industry
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