Consumers of most goods usually experience diminished satisfaction in each additional unit consumed. However, when variety appears endless, this may not be the case. Consider manufactured goods between 1890 and 1910

Which of the following must exist for a firm to engage in price discrimination?

A) The firm must be able to identify and separate its buyers into different classes, and the low-price buyers cannot resell the product to the high-price buyers. B) The firm must face an inelastic demand. C) The firm must be able to realize economies of scale. D) The firm must have no more than one class of buyer. E) The firm must be a natural monopoly.

When is a hypothesis accepted?

a. if it uses plausible abstractions b. if it uses general assumptions c. if it fits well with the facts. d. if it reflects a complex view