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​For Direct Price Discrimination to Work

Question 15

Multiple Choice

​For direct price discrimination to work


A) ​The firm must be able to identify the members of the low value group
B) The firm must charge a single price to all its customers
C) The firm need not worry about any arbitrage since all its customers are charged the same price
D) ​The firm should charge a higher price to those customers with the most elastic demand

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