1. Direct segment discrimination may be based on a) the age groups of buyers b) the location of buyers c) a buyer’s membership in certain clubs or associations d) All of the above
2. What key difference distinguishes an indirect from a direct price discrimination scheme? a) The seller doesn’t have market power. b) The seller has no means to identify different customer groups with different demand elasticities. c) The seller cannot prevent arbitrage between the two groups. d) None of the above.
3. Bundling different items together helps sellers extract more consumer surplus by a) smoothing out different preferences in different buyer groups. b) grouping buyers into more heterogeneous segments. c) implementing a direct price discrimination scheme. d) None of the above.