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A Firm with Production Located in a Poor Georgia Town

Question 2

Multiple Choice

A firm with production located in a poor Georgia town sells toys locally for $10 each and ships the same toys to sell in a wealthy North Carolina town for $15 each.They are not price discriminating if:


A) laws in Georgia allow it.
B) laws in North Carolina allow it.
C) total advertising costs are $5 per unit.
D) total transportation costs are $5 per unit.
E) consumers in North Carolina would pay more than $15 for the toys.

Correct Answer:

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