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​For Direct Price Discrimination to Work

Question 3

Multiple Choice

​For direct price discrimination to work


A) ​The firm need not be able to identify the members of the low-value group
B) The firm be able to charge the low-value customers a lower price than the higher-value customers
C) The firm need not worry about any arbitrage since all its customers are charged the same price
D) ​It needs to be too complicated for the customers to understand

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