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    Profit maximisation under third-degree Price Discrimination Profit-maximising output under third degree Price Discrimination. Profit maximisation is a form of Price Discrimination where a profit is maximised under a Price Discrimination first-degree or third-degree.

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    Profit maximisation under third-degree Price Discrimination Profit-maximising output under third degree Price Discrimination. Profit maximisation is a form of Price Discrimination where a profit is maximised under a Price Discrimination first-degree or third-degree.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    36 views18 pages

    Price Discrimination

    Uploaded by

    api-3825580
    Profit maximisation under third-degree Price Discrimination Profit-maximising output under third degree Price Discrimination. Profit maximisation is a form of Price Discrimination where a profit is maximised under a Price Discrimination first-degree or third-degree.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 18

    Price

    Discrimination
    Price discrimination

    First-degree
    price discrimination
    First-degree price discrimination
    P

    P1

    O 200 Q
    First-degree price discrimination
    P

    P1

    O 200 Q
    Price discrimination

    Third-degree
    price discrimination
    Third-degree price discrimination
    P

    Revenue from
    a single price

    P1

    O 200 Q
    Third-degree price discrimination
    P
    Increased revenue
    from price
    discrimination
    A higher discriminatory
    P2 price is now introduced

    P1

    O 150 200 Q
    Price discrimination

    Profit maximisation
    under third-degree
    price discrimination
    Profit-maximising output under
    third degree price discrimination

    DX
    O O O
    MRX

    (a) Market X
    Profit-maximising output under
    third degree price discrimination

    DY
    DX MRY
    O O O
    MRX

    (a) Market X (b) Market Y


    Profit-maximising output under
    third degree price discrimination

    DY
    DX MRY MRT
    O O O
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    DY
    DX MRY MRT
    O O O
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    DY
    DX MRY MRT
    O O O 3000
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    5
    DY
    DX MRY MRT
    O O O 3000
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    5
    DY
    DX MRY MRT
    O 1000 O O 3000
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    5
    DY
    DX MRY MRT
    O 1000 O 2000 O 3000
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    5
    DY
    DX MRY MRT
    O 1000 O 2000 O 3000
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)
    Profit-maximising output under
    third degree price discrimination

    MC

    9
    7
    5
    DY
    DX MRY MRT
    O 1000 O 2000 O 3000
    MRX

    (a) Market X (b) Market Y (c) Total


    (markets X + Y)

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