In order to engage in price discrimination a firm must be:
A) a price taker.
B) a price setter.
C) able to identify consumers whose elasticities differ.
D) both B and C.

Question

Quizplus · Accepted Answer

Price discrimination requires a firm to both set prices autonomously and identify consumers with distinct elasticities, which necessitates a degree of market power or influence.

In Order to Engage in Price Discrimination a Firm Must