Price discrimination requires:
a. a firm to be a competitive firm.
b. a firm to be able to segment its customers based on different price elasticities of demand.
c. arbitrage.
d. that the product can be easily resold.
b
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Bubba's Burgers sells hamburgers in a perfectly competitive market at a price of $1.50 each. At the profit-maximizing (cost-minimizing) level of output, average total cost is $1.90 per hamburger and average variable cost is $1.75 per hamburger
Should the firm continue to operate in the short run? Explain.
Refer to the tables. The domestic opportunity cost of one unit of X in Beta is:
Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta:
A. 2 units of Y.
B. 4 units of Y.
C. 1 unit of Y.
D. 3 units of Y.