All of the following might explain a firm offering quantity discounts except:
a. lower costs of handling large orders.
b. an inelastic demand for the good.
c. monopoly power in this market.
d. existence of some high and some low demand consumers.
Question 2
Perfect price discrimination
a. is a common occurrence in situations with many buyers.
b. occurs fairly often in situations with only a few buyers.
c. is only observed in competitive markets.
d. rarely occurs because firms do not have sufficient power to differentiate among specific buyers.
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