Unlike perfect price discrimination, group price discrimination does NOT require
A) firms to have market power.
B) the ability to distinguish between groups with different reservation prices.
C) the ability to limit or prevent resale.
D) None of the above.
D
You might also like to view...
Suppose that there are two countries (Ireland and Belgium) negotiating the government debt criteria for the Eurozone. Ireland has a high ratio of government debt to GDP; Belgium has a low ratio of debt to GDP. Which country is likely to prefer a higher inflation target?
A) Belgium, because the real value of its government debt will approach zero faster than Ireland's over time B) Ireland, because higher inflation will cause larger absolute reductions in the real value of its government debt than in Belgium C) It makes no difference because high rates of inflation will have proportional effects on the real debt of both countries. D) both, because each wants to see its real government debt decline
Which of the following examples is NOT a negative stock externality?
A) Goodwill generated by a company B) Noise pollution from an airport C) Odors emitted from a paper mill D) None of these cases are examples of negative stock externalities