In order to practice third degree price discrimination all of the following conditions must hold except that the firm
A) has monopoly power.
B) is able to exercise control over resales.
C) is willing to sell more to each customer at lower prices.
D) charges a lower price to groups with more elastic demand.

Question

Quizplus · Accepted Answer

The conditions for practicing third degree price discrimination include having monopoly power, being able to exercise control over resales, and charging a lower price to groups with more elastic demand. However, being willing to sell more to each customer at lower prices is not a condition for third degree price discrimination. In fact, the opposite may be true, as firms may be incentivized to limit quantity in order to increase prices for certain customers.

In Order to Practice Third Degree Price Discrimination All of the Following