Question: 1. Explain what is the central principle behind all forms of price dis- crimination (pricing by indicators, versioning, bundling) and how it is achieved by

1. Explain what is the central principle behind all forms of price dis- crimination (pricing by indicators, versioning, bundling) and how it is achieved by each of these forms of discrimination.

2. What is the relationship between a firm's demand elasticity and market demand elasticity in the Cournot model?

3. When is collusion more likely to be sustained, in a high growing or low growing industry? Explain.

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