AP Economics – 11/16/18
I. Bellwork: Graph for a Natural Monopoly
- Page 629 #2
II. Objectives
- Explain the meaning of Price Discrimination
- Discuss why price discrimination is common when producers have market power
III. Price Discrimination Read pages 630-635
- https://youtu.be/1kSk1Hu3TVM
- https://youtu.be/vihuK8JoK14?t=690
- Figure 63.2 Price Discrimination P634
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Micro 4.8 Price Discriminating Monopoly (First Degree)
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Second Degree Price Discrimination
- Perfect Price Discrimination
- The greater the number of prices charged, the lower the lowest price will be resulting in some consumers paying prices near the MC.
- The greater the number of prices charged, the more money extracted from consumers
- Common techniques for price discrimination
- Advance purchase restrictions
- Volume Discounts
- Two Part tariffs
IV. Classwork
- P635 1-2 and 1-5
- P636 #2
V. Homework – Formative Review on iLearn
VI. Test Tuesday
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