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On Nov 10, NY Times published an article titled Big Business Is Overcharging You $5,000 a Year (https://www.nytimes.com/2019/11/10/opinion/big-business-consumer-prices.html). The article suggests that the prices of broadband and cellphone services are much higher in the U.S. than in other countries.
a. What does the article attribute high prices to?
b. In a graph depict output and price associated with a monopoly market structure. In the same graph depict output and price that would be obtained under perfect competition.
c. In the same graph, depict social loss (deadweight loss) associated with the cellphone market in the U.S.
d. Which cellphone carrier do you use? Describe one instance of price discrimination that this carrier employs. (1 point) e. What kind of price discrimination is it? Use the categories provided by the textbook?
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