08 Aug Define first degree price discrimination.
Briefly answer the following questions.
(a) We showed in class that the perfectly competitive market economy produces a Pareto Efficient allocation of resources. What are the reasons we may still not like the market allocation?
(b) Prove that indifference curves cannot intersect.
(c) Some vaccines are mandatory (i.e., children cannot be enrolled in school unless they are vaccinated). What is the rationale for mandatory vaccination?
(d) Define first degree price discrimination. Does it reduce welfare? Why or why not?
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