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Question
How does price discrimination help us understand how many markets actually function?
a. All firms will practice price discrimination unless a government prohibits the practice.
b. Monopolistic competition is rare, so economists are able to focus in on the few firms that engage in the practice.
c. Instances of perfectly competitive markets and monopoly are rare.
d. Antidiscrimination laws are widespread, so models explaining price discrimination help us better understand markets that we are unable to witness.
e. Monopolistic competition is the most common market form, but it is the only one that does not engage in price discrimination.
Answer
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Related questions
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