Solution-Improve second-degree price discrimination

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How does economies of scale improve second-degree price discrimination?

a. People have increasing marginal benefit as ATC decreases.

b. ATC decreases and then increases which affects the cost to firms.

c. ATC decreases as output increases which allows a firm to change lower prices at different output levels.

d. Firms have increasing opportunity costs and therefore must sell more goods at higher prices to make up the extra costs.

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Improve second-degree price discrimination : How does economies of scale improve second-degree price discrimination?

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