Discuss the practical difficulties associated with practicing perfect price discrimination
What will be an ideal response?
Perfect price discrimination is difficult to practice because it requires that the firm know exactly the maximum willingness to pay of each individual buyer. Firms are generally unable to get this information or acquiring it may be quite costly.
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The OCA of the European Union falls short of the United States, for each of the following reasons, EXCEPT:
A) labor market integration in the European Union is weaker. B) goods market integration in the European Union is weaker. C) fiscal transfers are negligible. D) the European Union has more asymmetric shocks.
If the expected future exchange rate decreases, then the supply of dollars ________ and the demand for dollars ________
A) increases; increases B) decreases; increases C) increases; decreases D) decreases; decreases E) does not change; does not change