For a firm to be able to practice price discrimination,it must be a
A) price maker.
B) cost producer.
C) price practitioner.
D) price taker.
E) profit maker.

Question

Quizplus · Accepted Answer

Price discrimination involves charging different prices to different groups of consumers based on their willingness to pay. A firm must have market power as a price maker to engage in price discrimination. If it was a price taker, it would have to sell its product at the market price, which would not allow for price discrimination. As for the other choices, being a cost producer, a price practitioner, or a profit maker are all common characteristics of any firm and are not specific to practicing price discrimination.

For a Firm to Be Able to Practice Price Discrimination,it