Which of the following is a desirable characteristic in an economy?

Which of the following is not a requirement for a successful price discrimination strategy?

A) The firm must be able to prevent arbitrage. B) A firm must have the ability to charge a price greater than marginal cost. C) Transactions costs must be the same for all consumers. D) Some consumers must have a greater willingness to pay for the product than other consumers, and the firm must be able to know what prices consumers are willing to pay.

Suppose that there are two factors, capital and land, and that the United States is relatively land endowed while the European Union is relatively capital-endowed. According to the Heckscher-Ohlin model

A) European capitalists should support U.S.-European free trade. B) European landowners should support U.S.-European free trade. C) all capitalists in both countries should support free trade. D) all landowners should support free trade. E) the U.S. should compensate European countries once trade commences.