Which of the following is necessary for a monopolist to price discriminate between groups?
A) The groups are identifiable.
B) The groups have different willingness to pay.
C) A customer from one group cannot resell to a customer in another group.
D) All of the above conditions are necessary for the monopolist to price discriminate.

Question

Quizplus · Accepted Answer

All of the conditions are necessary: the monopolist must identify different groups, these groups must have different willingness to pay, and there must be no arbitrage between groups.

Which of the Following Is Necessary for a Monopolist to Price