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5. Consider the setup we used in our most recent lectures on price discrimination, where q2(p) = a*q1(p) and there are zero costs. Under this
5. Consider the setup we used in our most recent lectures on price discrimination, where q2(p) = a*q1(p) and there are zero costs. Under this setup, which of the following is FALSE?
(a) The profit maximizing single two-part tariff includes p = 0 as the per-unit price.
(b) Third-degree price discrimination results in the same profit as uniform pricing.
(c) Perfect price discrimination results in higher profits than any other form of pricing.
(d) More than one of the above.
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