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Price Discrimination Is a Rational Strategy for a Profit-Maximizing Firm

Question 208

Multiple Choice

Price discrimination is a rational strategy for a profit-maximizing firm when


A) it is possible to engage in arbitrage across market segments.
B) it is not possible to segment consumers into identifiable markets.
C) there is no opportunity for arbitrage across market segments.
D) firms want to increase the amount of consumer surplus received by its customers.

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