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COURSE: MICROECONOMICS 2 - MARKET SEGMENTATION: TYPE 3 DISCRIMINATION - CONSUMER SEGMENT PRICING Answer if True, False or Uncertain and explain your decisions. (a) Price

COURSE: MICROECONOMICS 2 - MARKET SEGMENTATION: TYPE 3 DISCRIMINATION - CONSUMER SEGMENT PRICING Answer if True, False or Uncertain and explain your decisions. (a) Price increase of subway ticket, during rush hour, is a case of Type III price discrimination. (b) If two consumer segments have different price-demand elasticities, then Type III price discrimination is feasible. (c) If a company applies a Type III price discrimination strategy, it is in its best interest to direct its investment in advertising towards segment with lowest willingness to pay. (d) A government (and public) enterprise does not apply type III price discrimination.

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