Which of the following is not necessary for price discrimination to occur?
A)a downward-sloping demand curve facing the firm
B)control over price by the firm
C)the firm can easily distinguish groups with different price elasticities
D)the firm can easily prevent resale of the good by lower-price customers
E)economies of scale exist

Question

Quizplus · Accepted Answer

Economies of scale are not necessary for price discrimination. Price discrimination requires a firm to have some control over pricing, the ability to segment markets, and prevent resale, but not necessarily economies of scale.

Which of the Following Is Not Necessary for Price Discrimination