Which of the following about price discrimination is true?
a. A price-discriminating seller will charge consumers with an elastic demand a lower price than consumers with an inelastic demand.
b. A firm must face a horizontal demand curve for its product in order to engage in effective price discrimination in a market.
c. Price discrimination always harms consumers and helps sellers in the short run but in the long run, consumers benefit at the expense of sellers.
d. A seller must have a monopoly in order to gain from price discrimination.
A
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Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
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