2. (2 marks for each part) True, false and explain. Marks awarded will depend on the quality of your explanation.

(i) Let ABC Corp. be a monopolist. That ABC charges customer X the same price as customer Y should be interpreted by Industry Canada as proof that ABC is not discriminating between customer X and customer Y.

(ii) Economic theory suggests that the Department of Finance should consider replacing the federal excise tax on gasoline, which is a specific tax, with an ad valorem tax.

(iii) With regard to the acquisition of human capital, earnings uncertainty compounds the inefficiencies caused by capital market imperfections.