ECON 4350 Midterm: ECON 4350 UGA 4350.hexam2.14
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Spring 2014: first-degree price discrimination, draw a diagram indicating rst-degree price discrimination. I have drawn the demand curve and mc. Indicate the mr curve and the total amount sold, q . Label the area of dead-weight loss (dwl) and of consumer surplus (cs) that is captured by the monopolist. If any of these are zero, so indicate: give the complete de nition of price discrimination. You may use more or fewer parts so long as you provide a complete de nition. Compute and label below the pre-merger hhi, the post-merger hhi, and the change in the hhi. Indicate whether the industry would be classi ed as unconcentrated, moderately concentrated, or highly concentrated, post merger. Show all your work in the following tables. Calculate the change between the pre and post-hhi: 2: third degree price discrimination, finish the following diagram illustrating third degree price discrimination. Consider the following non-cooperative game, where numbers represent the payo s for (player 1, player 2).
