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Unformatted text preview: 16. Yes, consumers are worse off by quantity price discrimination because consumer surplus is reduced. 19. Yes, the marginal cost curve affects a monopolys ability to price discriminate because it may prevent selling to a group of low price elasticity consumers if MC is too high or it could also open up a new group of consumers if MC is low. 24. a. General Motors is using multimarket price discrimination. b. The lower the price elasticity of demand, the higher price that General Motors can charge for each car. 26. a. Personalized consumer discounts are first-degree price discrimination. b. Past purchases can determine a consumers price elasticity of demand and help the store determine which products it can charge a higher price for and which ones should be discounted....
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- Fall '10