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Question:
To benefit from price discrimination, a monopolist least likely needs to have:
A
a higher-quality product at a premium price and a lower-quality alternative.
explanation
Price discrimination involves a single product, not two alternatives. As long as the company faces a downward-sloping demand curve, can identify at least two groups of customers with different price elasticities of demand, and can prevent reselling between groups, the company can profit from price discrimination.
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