Firms are most likely to engage in price discrimination if
A) the goods can be resold in the market without any loss in value or quality.
B) the goods can be resold in the market,but there is a large loss in the value or quality of the product.
C) the goods cannot be resold in the market.
D) consumers all have a similar reservation price for the goods produced.
E) consumers of all ages have similar preferences for the goods produced.

Question

Quizplus · Accepted Answer

Price discrimination is more feasible when goods cannot be resold in the market, as this prevents arbitrage (buying at a lower price in one market and selling at a higher price in another), which would undermine the firm's ability to set different prices for different consumers.

Firms Are Most Likely to Engage in Price Discrimination If