Question: Suppose that Cornell University faces a downward sloping linear demand curve

“Suppose that Cornell University faces a downward-sloping linear demand curve for the undergraduate education that it provides. If Cornell is able to engage in perfect, first-degree price discrimination (through obtaining detailed financial information from each prospective student and offering different levels of financial aid), then Cornell’s marginal and average revenue curves will be identical.” Explain why this statement is true, false or uncertain.


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  • CreatedNovember 14, 2014
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