Which of the following conditions that must be satisfied by a successful price discrimination scheme?

Question

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All of the given conditions are necessary for a successful price discrimination scheme. The seller must have market power to be able to charge different prices to different customer groups. The seller must also be able to identify customer groups with different demand elasticities to determine the optimal pricing strategy. Finally, the seller must be able to prevent arbitrage between the two groups to ensure that the groups do not trade goods or services among themselves to circumvent the pricing scheme.

Which of the Following Conditions That Must Be Satisfied by a Successful