What must occur for a firm to ensure profitable price discrimination?
A) The firm must sell a standardized product.
B) The firm must be able to keep its national markets separate.
C) The firm must encourage other firms and competitors to engage in arbitration.
D) Products sold by the firm must have same price elasticities of demand in different countries.
E) Products must be sold in countries where a small change in prices produces a large change in demand.

Question

Quizplus · Accepted Answer

For profitable price discrimination, a firm must be able to keep its markets separate to prevent arbitrage, where consumers buy at a lower price in one market and sell at a higher price in another.

What Must Occur for a Firm to Ensure Profitable Price