MONOPOLY AND PRICE DISCRIMINATION

MONOPOLY & PRICE DISCRIMINATION

Price Discrimination

Single-price monopoly

Firm that is limited to changing same price for each unit of output sold

Price discrimination occurs when a firm charges different prices to different customers for reasons other than differences in costs

Price-discriminating monopoly does not discriminate based on prejudice, stereotypes, or ill-will toward any person or group

Rather, it divides its customers into different categories based on their willingness to pay for good

Requirements for Price Discrimination

Although every firm would like to practice price discrimination, not all of them can

To successfully price discriminate, three conditions must be satisfied

–        Must be a downward-sloping demand curve for the firm’s output

–        Firm must be able to identify consumers willing to pay more

–        Firm must be able to prevent low-price customers from reselling to high-price customers

Price Discrimination That Harms Consumers

•          Price discrimination always benefits owners of a firm

–        Can use this ability to increase its profit

•          When price discrimination raises price for some consumer above price they would pay under a single-price policy it harms consumers

–        Additional profit for the firm is equal to monetary loss of consumers

Price Discrimination That Benefits Consumers

•          Price discrimination benefits monopoly at the same time it benefits a group of consumers

•          Since no one’s price is raised, no one is harmed by this policy

–        When price discrimination lowers price for some consumers below what they would pay under a single-price policy, it benefits consumers as well as firm

Perfect Price Discrimination

•          Suppose a firm could somehow find out maximum price customers would be willing to pay for each unit of output it sells

•          It could increase profits even further by practicing perfect price discrimination

–        Firm charges each customer the most the customer would be willing to pay for each unit he or she buys

–        Increases profit at expense of consumers

•          Perfect price discrimination is very difficult to practice in the real world

–        Would require firm to read its customers’ minds

•          Marginal revenue is equal to price of additional unit sold

–        Firm’s MR curve is same as its demand curve

Flood Crisis in Niger Delta

Homes and properties rendered useless and destroyed due to flood.







These exposure demonstrate governments unpreparedness on societies concern, especially during challenges, and risks which can endanger lives and properties
This picture also illustrate the place of risk and the societies at large, various concerns and the attitudes of people and communities towards risk    

Displaced communities taking shatters in an unsaved environment. This also include the absence of insurance policy and government quick response

How does computer increase productivity

Computers increase productivity with the rapid sharing and sorting of information. Computers take routing repetitive work out of the hands of employees. Computers also have a higher degree of accuracy.

Housing a more accelerate problem globally

HOUSING PROVISION

   The provision of adequate housing that is safe, secure, accessible, affordable and sanitary is a fundamental human right, as enshrined in the United Nations Habitat Agenda - the global call on human settlements. Housing has been universally accepted as the second most important human necessity. It is a basic necessity for human survival and an essential component to the advancement of the quality of life of the citizenry. This universally accepted fact has been acknowledged by successive Nigerian Governments, as evident from the pockets of uncoordinated initiatives and programmes in mass housing development over the years. Despite these efforts, housing delivery remains a major challenge.  

 Effective housing delivery involves many actors and therefore requires effective partnership collaboration and information sharing. The significant shortfall in housing provision has been attributed to the inadequacy of the existing national Housing Policy (1991) to meet current challenges and economic trends and to guide development in the sector. Government has realized that effective housing delivery can only be achieved within the framework of a well articulated National Housing Policy that sets out the broad guidelines, goals, objectives and strategies for Housing in Nigeria, which is home-grown and driven by the people. This underpins the development of a revised National Housing Policy document.

will continue later...........................