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

Price discrimination requires a firm to have some control over prices (price setter) and the ability to segment the market based on different price elasticities of demand among consumers.

To Engage in Price Discrimination a Firm Must Be