This task has a purpose to illustrate the concept of monopoly and price discrimination. The video shows how monopoly power arises and how it might disappear.
You are to watch a video clip from the Economics of Seinfeld (The Soup Nazi)
Here is the video (http://yadayadayadaecon.com/clip/67/)
Then you are to answer the following questions.
- What are the conditions that exist in the video for the monopolist to achieve monopoly power?
- Have you observed price discrimination in the video clip? Briefly explain.
- What might possibly undermine the soup makerâ€™s monopoly power?