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1) Will raising prices increase the rate of return from a line of business? 2) Can you think of a healthcare firm that does not price discriminate (i

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1) Will raising prices increase the rate of return from a line of business?

2) Can you think of a healthcare firm that does not price discriminate (i.e., charge different customers different amounts for the same product)?

3. Price discrimination requires the ability to distinguish customers who are the most price sensitive and the ability to prevent arbitrage (resale of your products by customers who buy at low prices). What attributes of healthcare products make these tasks easy to do?