For direct price discrimination to work
a. The firm need not be able to identify the members of the low-value group
b. The firm be able to charge the low-value customers a lower price than the higher-value customers
c. The firm need not worry about any arbitrage since all its customers are charged the same price
d. It needs to be too complicated for the customers to understand
b
Economics
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If the social cost of producing a good exceeds the private cost,
A) a negative externality exists. B) no externalities exist. C) a positive externality exists. D) the market is efficient.
Economics
If the demand for fast-food rises as a result of lower income, we would say fast-food is an inferior good
a. True b. False Indicate whether the statement is true or false
Economics