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gregori [183]
3 years ago
14

Why do monopolies engage in price discrimination when possible? Enumerate and explain the nature of possible impediments to pric

e discrimination.
Business
1 answer:
TEA [102]3 years ago
6 0
Monopolies engage in price discrimination possible because they can get away with it.

A monopoly is where only one seller sells a particular good. Because of this, the seller has the power to dictate the price of the good to the extend of giving the good the highest price possible that a consumer is willing to pay. 

Consumers must pay the price of said product because they can not get the same product from any other seller.
You might be interested in
What is a market that runs most efficiently when one large firm supplies all of the output referred to as?
stealth61 [152]

Answer:

a natural monopoly

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

A monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.

On a related note, a natural monopoly is a market that runs most efficiently when all of the output is supplied by one large business firm. Thus, a business firm is considered to be a natural monopoly if it's capable of producing the total output of the market at a lower cost than two or more business firms could.

Some examples of natural monopoly are the United States Postal Service, electricity grid, water supply, gas network, sewer services, energy distributors, railway service, etc.

7 0
2 years ago
Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisio
abruzzese [7]

Answer:

Please check the info below

Explanation:

1. For Osaka

Margin =  Net Operating Income / Sales *100

= $ 792000 / $9900000 *100

= 8.00%

Turnover = Sales / Average Operating Assets * 100

= $ 9900000 / $ 2475000 * 100

= 4.00%

ROI =  Margin * Turnover

= 8% *4 %

= 32.00%

Hence the correct answer is 32.00%

For Yokohama :

Margin =  Net Operating Income / Sales *100

= $ 2900000 / $ 29000000*100

= 10.00%

Turnover = Sales / Average Operating Assets * 100

= $ 29000000 / $ 14500000* 100

= 2.00%

ROI =  Margin * Turnover

= 10% *2 %

= 20.00%

Hence the correct answer is 20.00%

2. The correct answer is  

Osaka = $ 371,250

Yokohama = $ 435,000

3. The correct answer is No

This is because since Osaka has a higher ROI, Yokohama’s greater amount of residual income is not an indication that it is better managed

4 0
3 years ago
A total of 1000 residents in minnesota were asked which season they preferred
Molodets [167]
They all said winter.
Hope this helps!
7 0
3 years ago
ou have just read an explanation of the figures you studying as the total dollar value of final goods and services produced with
Shalnov [3]

Answer:

REAL GDP

Explanation:

GDP typically used as a variable to measure a nation's economic strength within a certain time period. But often time, the value of GDP is a little bit jaded. If the inflation is high, an increase in GDP doesn't really mean that the country become more productive.

This is why there are many experts prefers to use REAL GDP as a more accurate unit to measure the economic strength.

7 0
2 years ago
A company is offering perpetual preferred stock (its dividend payments last forever) with a fixed annual dividend of $100. If yo
sukhopar [10]

Answer:

833.33

Explanation:

The fixed annual dividend is $100

The required rate of return on this investment is 12%

Therefore the value for each share can be calculated as follows

= 100/(12/100)

= 100/0.12

= 833.33

Hence the value for each share is 833.33

8 0
3 years ago
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