Worked by: Muharrem Hysaj

Three types of markets: a) Perfect competitive market b) Monopoly market c) Oligopoly market

a) b)

c)

It is sole in the market It is price maker Government can me a monopoly itself It is very rare because of its barriers: Have the key sources Take from government the exclusive right of producing High cost of production

A practice of selling in order to get the highest profit It is part of monopolistic market Sellers charge customers according to their willingness of paying Arbitrage firms prevent typical companies from price discrimination Price discrimination increase welfare

Airlines companies discriminate with tickets prices Internet companies, like JSTOR, charge differently colleges and universities Restaurants discriminate in drinks prices and tables rent Hospitals charge depending on their quality

Neither elastic curve, nor aggregate curve intervene ATC-price not be charged. Less elastic curve touch ATC and more elastic one cut it-result in production

Both less and more elastic curve would touch ATC- happen high nr of obtain outputs The two demand curves would cut ATC- the maximum profit

Price discrimination has economic and social affects -It is applied only by monopolistic firms For sellers price discrimination is beneficial because it maximize their profits For buyers it is harmful because some of them pay additional costs Price discrimination will always be present in our life