Why Is It Harder to Price Discriminate with Shampoo Than

question 76

Multiple Choice

Why is it harder to price discriminate with shampoo than with haircuts?

• A) Haircuts are harder to resell.
• B) There are more substitutes for shampoo.
• C) Haircuts are a bundle of goods: location of the salon, quality of the stylist, etc.
• D) There is less competition for selling shampoo.

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Definitions:

Recall

The ability to retrieve and reproduce information from memory that was previously learned.

Relearning

The process of learning material or skills that were once learned and then forgotten.

Retention

The ability to store and recall information or experiences over time.

Recency Effect

A cognitive bias that predisposes individuals to remember the most recently presented information better than information presented earlier.