Which of the following is not a necessary condition of price discrimination?

Question

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While it is often the case that price discrimination is motivated by differences in the cost of serving different customers, this is not a necessary condition. Price discrimination can also occur if a firm can identify and segment customers based on their willingness to pay different prices, or if reselling the product is either difficult or impossible. However, being a price searcher (i.e. having some degree of market power) is a necessary condition, as is the ability to distinguish between customers willing to pay different prices.

Which of the Following Is Not a Necessary Condition of Price