1. The US Department of Education was established as a new
cabinet department in 1982. College costs (tuition, room, board,
books, expenses), after adjustment for inflation, have gone up from
$8,000 in 1980 to more than $20,000 today. Is this a coincidence?
Discuss how the government may be helping colleges raise total
costs through collusive behavior and first-degree price
discrimination.
2. Drug firms engage in third-degree
price discrimination when they sell their products overseas for a
lower price than in...