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(Solution document) Can you think of any examples of markets where time-varying prices might arise to pass along higher marginal costs that occur during certain periods


  1. Can you think of any examples of markets where time-varying prices might arise to pass along higher marginal costs that occur during certain periods even if there is little or no variation in demand or willingness-to-pay over time? Should we still consider this variation in price over time to be an example of price discrimination? 


2. Provide at least three examples and briefly discuss why costs might go up during "high demand" periods. (Recall that capacity constraints can be thought of as a very high MC above some output level!) 

 







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