Which of the following conditions will allow a ﬁrm to undertake price discrimination successfully?
A) The good or service that is being sold must be a new or innovative product.
B) The ﬁrm must face a perfectly elastic demand curve.
C) The ﬁrm must be able to identify consumers willing to pay different prices.
D) Customers must be able to resell the good or service.

Question

Quizplus · Accepted Answer

For successful price discrimination, a firm must be able to segment the market and identify consumers who are willing to pay different prices for the same good or service. This allows the firm to charge different prices to different groups based on their willingness to pay, maximizing profits.

Which of the Following Conditions Will Allow a ﬁRm to Undertake