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Firms That Provide Services (E

Question 240

Multiple Choice

Firms that provide services (e.g.,haircuts,landscaping,medical care,and dental care) are better able to engage in price discrimination.Why might this be the case?


A) Service firms have more information about their customers.
B) Service firms can readily prevent arbitrage.
C) Service firms can easily identify customer attributes associated with willingness to pay.
D) Service firms have more information about their costs.

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