Which of the following is not a condition required for a monopolist to price discriminate?
A)the demand curve facing the firm must be downward-sloping
B)the firm must exhibit strong economies of scale
C)there must be different groups of buyers with different price elasticities of demand
D)the firm must be able to prevent reselling of the product
E)the firm must have some market power

Question

Quizplus · Accepted Answer

Strong economies of scale are not necessary for a monopolist to engage in price discrimination. The other conditions listed are necessary for price discrimination to occur.

Which of the Following Is Not a Condition Required for a Monopolist