Ask Question
BusinessBusiness
11 August, 05:42

When a market model moves from that of a monopoly to one in which perfect price discrimination is practiced, the deadweight loss:

+4
Answers (1)
  1. 11 August, 05:56
    0
    The deadweight loss decreases.

    Explanation:

    Deadweight loss is defined as the loss to society that is caused by price controls and taxes.

    A monopoly market has control over the prices.

    Price discrimination is the practice of charging a different price for the same good or service. There are three types of price discrimination - first-degree, second-degree, and third-degree price discrimination.

    The firm is able to charge the maximum possible price for each unit which enables the firm to capture all available consumer surplus for itself.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When a market model moves from that of a monopoly to one in which perfect price discrimination is practiced, the deadweight loss: ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Singer and McMann are partners in a business. Singer's original capital was $36,200 and McMann's was $53,200. They agree to salaries of $12,900 and $18,500 for Singer and McMann, respectively, and 10% interest on original capital.
Answers (1)
One of the most explosive areas of growth in recent years has been cellular phone networks
Answers (2)
The expense recognition (matching) principle, as applied to bad debts, requires: multiple choice that expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
Answers (1)
The mortgage on your house is five years old. It required monthly payments of $1,450 , had an original term of 30 years, and had an interest rate of 9% (APR).
Answers (1)
Fat's meats is in an oligopoly market. according to the kinked demand curve model, if it raises its prices to increase profit, its competitors will:
Answers (1)
New Questions in Business
Marigold Company owns equipment that cost $936,000 and has accumulated depreciation of $395,200. The expected future net cash flows from the use of the asset are expected to be $520,000. The fair value of the equipment is $416,000.
Answers (1)
What does a police car look like
Answers (1)
Juan Morales Company had the following account balances at year-end: Cost of Goods Sold $60,000; Inventory $15,000; Operating Expenses $29,000; Sales Revenue $115,000; Sales Discounts $1,200; and Sales Returns and Allowances $1,700.
Answers (1)
During the trial phase of Soft Drink Soda Corporation's suit against TimeOut Convenience Stores, Inc., their attorneys engage in voir dire. This is: the determination of the issues to be argued.
Answers (1)
John d rockefeller built his own oil empire by creating
Answers (1)
Home » Business » When a market model moves from that of a monopoly to one in which perfect price discrimination is practiced, the deadweight loss:
Sign Up Forgot Password?