Which of the following conditions is not required for price discrimination?
A) Buyers with different elasticities must be physically separate from each other.
B) The good or service cannot be profitably resold by original buyers.
C) The seller must be able to segment the market, that is, to distinguish buyers with different elasticities of demand.
D) The seller must possess some degree of monopoly power.

Question

Quizplus · Accepted Answer

The physical separation of buyers with different elasticities of demand can make price discrimination easier, but it is not a necessary condition. Price discrimination can still occur without physical separation, as long as the seller can identify and distinguish the different groups of buyers based on their willingness to pay. The other three conditions are necessary for price discrimination - the good or service cannot be profitably resold (B), the seller must be able to segment the market (C), and the seller must possess some degree of monopoly power (D).

Which of the Following Conditions Is Not Required for Price