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 makers monopoly power?
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