If price discrimination enables sellers to increase net revenues, why don't all sellers try it? Because
A) some sellers can't manipulate their price.
B) some sellers can't control resentment.
C) some sellers can't prevent low-price buyers reselling to high-price buyers.
D) of all the above reasons.
Question 2
Refer to the scenario above. Suppose Pat can impose a fine of 70 if Joe chooses to keep the money and the cost of imposing such a fine to Pat is 10. Which of the following is likely to happen if Pat is known to be vengeful?
A) Joe will choose to split the money into two parts if Pat gives it to him.
B) Joe will choose to keep the entire money for himself if Pat gives it to him.
C) Pat will not give the money to Joe.
D) An unique equilibrium will not occur.
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