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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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