Which of the following is a necessary condition for successful price discrimination?
A) The seller must possess market power. B) Transactions costs must be zero.
C) The buyer must possess market power. D) Buyers must have identical inelastic demands.
Question 2
A new area of economics studies situations in which people appear to be making choices that do not appear to be economically rational. This area is called
A) irrational economics. B) social economics.
C) behavioral economics. D) new wave economics.
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