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Why does the possibility of arbitrage weaken the effectiveness of price discrimination? Low-elasticity customers could buy low and sell high to high-elasticity customers High-elasticity customers
Why does the possibility of arbitrage weaken the effectiveness of price discrimination?
Low-elasticity customers could buy low and sell high to high-elasticity customers
High-elasticity customers could buy low and sell high to low-elasticity customers
Monopolists could extract more consumer surplus than firms in more competitive markets
Competitive markets drive the price down to marginal cost
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