If a firm wants to engage in price discrimination it must have some market power.

Question

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Price discrimination involves charging different prices to different customers for the same product or service, which requires the ability to exercise some level of market power. If a firm lacks market power, it would not be able to charge different prices to different segments of customers, as it would not have the ability to dictate prices in the market. Therefore, price discrimination is typically associated with firms that have some degree of market power, such as a monopoly or oligopoly.

If a Firm Wants to Engage in Price Discrimination It