523 problem set 6
1. Define the 3 types of price discrimination and explain why 1st degree discrimination is very difficult to practice. Provide 1 example where a form of 1st degree discrimination is practiced.
2. Explain the conditions necessary for a firm to practice 3rd degree price discrimination and using airline conditions as examples.
3. Wall-Mart offers to match the price of any competitor. Why is this guarantee not necessarily a benefit to consumers?
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