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Automobile Manufacturers Often Use Incentive Programs,including Special Financing Rates and Cash

Question 12

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Automobile manufacturers often use incentive programs,including special financing rates and cash rebates,to increase sales.However,a customer is usually restricted to choosing either the low financing rate or the rebate,but not both.Is this an example of price discrimination? If so,what type? Explain your reasoning.

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Yes,this is a form of price discriminati...

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