Answer the following statement true (T) or false (F)

1) Extensive network effects may drive a market toward natural monopoly because consumers
tend to choose a common, standard product that everyone else is using.
2) Price discrimination occurs whenever a firm sells a good for two different prices.
3) Price discrimination will result in consumers with more elastic demand purchasing more of the
good than when a single price is charged to all consumers in the market.
4) Successful price discrimination requires that buyers charged the different prices be physically
separated.
5) Price discrimination is illegal in the United States under antitrust regulations.

1) T
2) F
3) T
4) F
5) F