Most colleges and universities publish a single tuition figure, often right on their website. Yet, it's claimed that colleges and universities are masters of first-degree price discrimination.
a. Explain how, in the real world, colleges and universities charge different students different prices for access to the same good.
b. First-degree price discrimination requires information about individual customers' demands. Where do colleges and universities get the information they need to estimate each prospective student's willingness to pay?
c. One requirement to implement first-degree price discrimination is the ability to prevent resale. Explain why colleges and universities don't have to worry about that. Are there other businesses you can think of where resale simply isn't possible?