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Why Is an Expert Hairstylist More Likely to Price Discriminate

Question 41

Multiple Choice

Why is an expert hairstylist more likely to price discriminate than an expert jam maker?


A) A hairstylist has no market power, but a jam maker can have market power.
B) A haircut cannot be resold, but a jar of jam can be resold.
C) There are many substitutes for a hairstyle but few substitutes for a particular jam.
D) The stylist uses fewer inputs than the jam maker.

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