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Price discrimination - short answer


Question 1

Explain how a motorcar manufacturer may practice price discrimination.

Question 2

What does a monopolist have to ensure does not happen if it wants the process of price discrimination to work?

Question 3

For price discrimination to work successfully the supplier will have to divide the market into at least two sections or segments. What characteristics do these segments have to have for the procedure to work?

Question 4

Who gains from price discrimination?

Question 5

Discuss how price discriminating monopolists stop products or services leaking from one market to another.