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Electricity Is Typically Sold to Residential Consumers at a Higher

Question 163

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Electricity is typically sold to residential consumers at a higher price than the price charged to commercial or industrial consumers.Which of the following does NOT help to explain this widespread example of imperfect price discrimination?


A) Residential consumers can be identified.
B) Residential and industrial consumers are usually in different geographic areas.
C) Resale of electricity by the industrial consumer to the residential consumer is virtually impossible.
D) Commercial and industrial consumers can be identified.
E) Electricity is a necessity to residential consumers but not to commercial or industrial consumers.

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