To practice effective price discrimination, a firm must:
A) advertise its product.
B) have identical customers.
C) know the numerical demand elasticities of buyers.
D) be a price setter.

Question

Quizplus · Accepted Answer

To practice effective price discrimination, a firm must be a price setter, meaning it has some control over the prices it charges, as opposed to being a price taker in a perfectly competitive market.

To Practice Effective Price Discrimination, a Firm Must