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Bindy, an 18-Year-Old High School Graduate, and Luciana, a 40-Year-Old

Question 25

Multiple Choice

Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just purchased identical hot new sports cars. Acme Insurance charges a higher rate to insure Bindy than Luciana. This practice is an example of:


A) collusion.
B) price discrimination.
C) two-part tariff.
D) bundling.
E) none of the above

Correct Answer:

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