a. What conditions must hold true for a firm to price discriminate? b. How and why might barber shops price discriminate? How are the conditions in part (a) met in the case of a barber shop? (Note: your discussion should revolve around elasticities)

a. What conditions must hold true for a firm to price discriminate? b. How and why might barber shops price discriminate? How are the conditions in part (a) met in the case of a barber shop? (Note: your discussion should revolve around elasticities)

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 7E

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a. What conditions must hold true for a firm to price discriminate?

b. How and why might barber shops price discriminate? How are the conditions in part (a) met in the case of a barber shop? (Note: your discussion should revolve around elasticities)

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