Discuss the differences between perfect and imperfect price discrimination and the benefits of each to a monopolist.
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Write My Essay For MeDiscussion 7 Cartels, Oligopolies, and Monopolistic Competition
Perfect price discrimination, also known as first-degree discrimination, occurs when businesses charge the maximum possible price for every unit consumed. According to Akgün & Chioveanu (2019), given that prices vary among units, the businesses record all the available consumer surplus or the economic surplus. This applies to perfect price discrimination.
On the other hand, imperfect price discrimination describes markets that approach perfect discrimination of prices. An example of imperfect price discrimination involves successful car salespeople with the exceptional abilities to determine exactly how much every customer is willing to reserve a price or pay (De & Montes, 2017). It is…
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