Price discrimination, where different units of a good are sold for different prices
A) is impossible because there can only be one market price.
B) can be effectively practiced by all monopolists.
C) maximizes consumer welfare because each consumer pays only the price he or she is willing to pay.
D) is possible if the good cannot be resold.

Question

Quizplus · Accepted Answer

Price discrimination is possible if the good cannot be resold because it prevents arbitrage, where consumers could buy at a lower price and resell at a higher price, undermining the price discrimination strategy.

Price Discrimination, Where Different Units of a Good Are Sold