Explain the effects of low price-guarantee on the price

1. Explain the effects of low price-guarantee on the price. (1.5 Marks)
2. If a group of sellers could form a cartel, what quantity and price would they try to set? (1.5
Marks)
3. What do you understand by discriminatory monopoly? Bring out the conditions that enables
the monopoly firm to charge different prices for its product in different markets. (2 Marks)

Answer preview:

1. Explain the effects of low price-guarantee on the price. (1.5 Marks) 2. If a group of sellers could form a cartel, what quantity and price would they try to set? (1.5 Marks) 3. What do you understand by discriminatory monopoly? Bring out the conditions that enables the monopoly firm to charge different prices for its product in different markets. (2 Marks)

word limit:597