https://padlet.com/andrewtan1/ayyvkmxtqfzl Made with a wish on a star en-us 2017-07-21 01:49:42 UTC 2017-07-21 05:12:15 UTC hello@padlet.com andrewtan1 https://padlet.com/andrewtan1/ayyvkmxtqfzl/wish/179159642

Stand...
Unless proper restrictions to control behaviour of monopolist firms are imposed, more often than not market structures that can use price discrimination are not beneficial to consumers.

Substantiation... ]]> 2017-07-21 01:49:42 UTC https://padlet.com/andrewtan1/ayyvkmxtqfzl/wish/179159642 andrewtan1 https://padlet.com/andrewtan1/ayyvkmxtqfzl/wish/179159643 Monopolies and Oligopolies are harmful to consumers because they set price larger than marginal cost, reducing consumer surplus

Discriminatory pricing....
These market structures extract consumer surplus for their own benefit, by charging different prices for the same product, for different units of it or to different groups of consumers not due to differences in cost. This exacerbates inequality as profits are concentrated in the hands of a few firms at the expense of consumer who have to pay higher price. Furthermore, firms can practise predatory pricing by using price discrimination to drive competitors out of business. If that happens, it will lead to loss of consumer choice and also a fall in consumer surplus. 



Efficiency reasons...
Supernormal profits are concentrated in the hands of monopoly firms, at the expense of consumer paying higher prices. It can also afford to mark up prices due to how price inelastic its good are, therefore even with higher prices demand will not fall more than proportionately. As a monopolist restricts output below the socially efficient level, consumers sovereignty is restricted and there is an abuse of monopoly power.


]]> 2017-07-21 01:49:42 UTC https://padlet.com/andrewtan1/ayyvkmxtqfzl/wish/179159643 andrewtan1 https://padlet.com/andrewtan1/ayyvkmxtqfzl/wish/179159644 Abigail 
Kym
Zhuo Yang 
Yi Dah

]]> 2017-07-21 01:49:42 UTC https://padlet.com/andrewtan1/ayyvkmxtqfzl/wish/179159644