In order to engage in price discrimination a firm must be:
A)a price-taker.
B)a price-setter.
C)able to identify consumers whose elasticities differ.
D)a price-setter, and it must be able to identify consumers whose elasticities differ.

Question

Quizplus · Accepted Answer

In order to engage in price discrimination, a firm must be a price-setter, as it needs to have some control over the price it charges. Additionally, it must be able to identify consumers whose elasticities differ, as the practice of price discrimination involves charging different prices to different groups of consumers based on their willingness to pay.

In Order to Engage in Price Discrimination a Firm Must