To engage in price discrimination, it is necessary that
A)a seller be a price searcher.
B)there be no arbitrage.
C)a seller incur different costs for servicing different customers.
D)a and b
E)all of the above

Question

Quizplus · Accepted Answer

Price discrimination requires a seller to have some control over pricing (price searcher) and the ability to segment markets without the possibility of arbitrage (buying in one market to sell in another at a profit). Different costs for servicing different customers are not a requirement for price discrimination.

To Engage in Price Discrimination, It Is Necessary That