1. Consider a price ceiling imposed on a monopoly that is set below the competitive price. Design a diagram showing the monopoly equilibrium in this case. Use your diagram to show that a price ceiling set this low will create a shortage.
2. What conditions must hold for a firm to be able to practice price discrimination? How are consumers affected by price discrimination? Elaborate about how consumers are affected.© BrainMass Inc. brainmass.com October 9, 2019, 4:59 pm ad1c9bdddf
Price Ceilings/Discrimination are highlighted.