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Question
Which of the following is a way in which enterprises with some market power limit arbitrage so that their price discrimination policy works?
A. Pricing its products identically despite huge differences in demand across different markets
B. Differentiating otherwise identical products among nations along some line, such as design or packaging
C. Adopting a pricing strategy that matches what competitors charge in each of the different national markets
D. Limiting sales of its products to only a few nations
E. Selling its products at higher prices than normal to break even by selling fewer units
Answer
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