Evaluate whether following statements about price discrimination are TRUE or FALSE?
Statement 1: Price discrimination is about charging different buyers different prices for different goods or services.
Statement 2: Arbitrage makes it difficult for a firm to set different prices in different markets.

Question

Evaluate whether following statements about price discrimination are TRUE or FALSE?

Statement 1: Price discrimination is about charging different buyers different prices for different goods or services.

Statement 2: Arbitrage makes it difficult for a firm to set different prices in different markets.

Answer

Statement 1 is true; statement 2 is false

Answer

Statement 1 is true; statement 2 is true

Answer

Statement 1 is false; statement 2 is false

Answer

Statement 1 is false; statement 2 is true

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