Key Diagrams - 3rd Degree Price Discrimination (Monopoly)

3rd degree price discrimination is perhaps the most common form of market segmentation by a firm with monopoly power. This is a key diagram to know how to draw. It involves selling the same product to different groups of consumers based on their respective price elasticities of demand. The aim is to drive revenues and profits higher.
#monopoly #pricing #profit

[@potofcandies]

Hi, may I know why is the market AR and MR curves steep at the top and gradual at the bottom?

[@JMRIMG]

Thanks so much this helped a lot, especially the assumptions!

[@tutor2u-official]

Every best wish!

[@amartya_sen]

Cheers Geoff

[@abid2497]

Hi, could you make a video on Labour Market issues and the policies to tackle them?

[@tutor2u-official]

Will do - over the weekend - will drop it on Sunday!

[@abid2497]

@@tutor2u-official Thank you, appreciate it

[@vngeance2623]

I’m failing economics on the 23rd

[@tutor2u-official]

Keep going - all will be good!

[@leahhoward3172]

same!

[@crazykidsrandom1]

Why is the MC curve a straight horizontal line in Market A and B but not Whole?

[@tutor2u-official]

We assume that the marginal cost for supplying to each sub market is the same. A simplifying assumption.

[@MacaanJecel84]

x e n ..oppppop .خ .