All exercises are available on MyEconLab; = * answer at * = answer* = answer at the back of this book; M=mathematical M = mathematicalM = mathematical problem.

1. Conditions for Price Discrimination

  1. 1.1 As of 2015, the pharmaceutical companies Abbott Laboratories, AstraZeneca, Aventis Pharmaceuticals, Bristol-Myers Squibb Company, Eli Lilly, GlaxoSmithKline, Janssen, Johnson & Johnson, Novartis, Ortho-McNeil, and Pfizer provide low-income, elderly people with discounts on many prescription medicines. Why would these firms do that?

  2. 1.2 Alexx’s monopoly currently sells its product at a single price. What are the necessary conditions so that he can profitably price discriminate?

  3. *1.3 Spenser’s Superior Stoves advertises a ...

Get Microeconomics: Theory and Applications with Calculus, 4e now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.