Discussion 1

Imagine monopolizing a service or product of your choice. hash out how you would go about setting hurts for your product or service.
The uncomplicated monopoliser sets bell higher than marginal cost because I am the sole producer of a good or service, and as a result is in control of the bellmonopolies depart sell their product at the price where profit is maximized. A monopoly, on the other hand, must(prenominal) set prices in such(prenominal) a way that optimizes the level of demand and prices to achieve the greatest amount of profit. monopoly price exceeds marginal revenue because the monopolist must lower its price in order to increase sales.

The token of product to monopolize is computer softw be through price discrimination. This is whereby the product bed be sold to pupils at a special price through the restriction to students who have student identification requirements whenever they go and purchase the product. This is because the suppliers of this type of product acknowledge that it would be difficult to maximize profits when selling to students. This helps the monopolist to create goodwill and to be benevolent whenever the students are content when they purchase the products at a lower price. The students would be reject from selling the product through identification checks through supplying of warranties (Monopoly, n.d).





Even though the product would be sold at a lower price, the company would still be making profits because the product would be sold at prices that are more than the cost of selling the product (Monopoly, n.d). The product can also be charged differently for the computer software system in different companies. This product can be priced extremely in countries with high income and at a low price in countries with low income. The product would be labeled and warranties would be used in countries where they are valid so as to avoid the resale of the product. This would be done through separation of markets so as to know the markets to charge a higher price and the ones to...If you want to get a full essay, order it on our website: Ordercustompaper.com



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