What condition must exist for a monopolist to effectively price discriminate?
A) The monopolist must face consumers with identical willingness to pay.
B) The monopolist must produce a good or service that can be resold.
C) The monopolist must produce a good that cannot be resold.
D) The monopolist must charge the highest price possible.

Question

Quizplus · Accepted Answer

For effective price discrimination, the monopolist must prevent resale of the product to ensure that consumers cannot buy at a lower price and sell to others at a higher price.

What Condition Must Exist for a Monopolist to Effectively Price